Tech Stock Hits Record High Before Earnings
Hewlett Packard Enterprise (HPE) is set to report fiscal second-quarter earnings on June 1, with analysts expecting 54 cents per share on $9.82 billion in revenue, marking year-over-year growth of 42.1% and 28.7% respectively. The stock hit a record high of $38.58 in late May, with short interest dropping 67.8% but still covering 5.13% of the float, as traders anticipate a possible post-earnings rally.
Hewlett Packard Enterprise Co (NYSE:HPE) will report its fiscal second-quarter earnings after market close on Monday, June 1. Analysts project earnings of 54 cents per share on revenue of $9.82 billion, reflecting a 42.1% increase in earnings and a 28.7% rise in revenue compared to the same period last year. The stock has surged to a record high of $38.58 on May 26, marking its 12th consecutive weekly gain if it closes higher this week. Year-to-date, HPE shares are up 55.9%, though they fell 3.3% following the March earnings report, where the stock has closed higher in five of the last eight post-earnings sessions. Options traders are pricing in a 12.9% post-earnings swing, more than double the stock’s average move of 5.8% over the past eight quarters. Short interest has declined by 67.8% over the last two reporting periods, though 67.75 million shares remain sold short, accounting for 5.13% of the float. At current trading volumes, covering these short positions would take just 3.83 days. Among 20 covering brokerages, 11 maintain a 'hold' rating, while the consensus 12-month price target of $28.64 represents a 23.7% discount to its current pre-earnings price. An upbeat earnings report could shift analyst sentiment and drive the stock higher, given its recent momentum and strong revenue growth.
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