Hewlett Packard Enterprise’s Upcoming Q4 Results Preview

Deutsche Bank provided its outlook on Hewlett Packard Enterprise Company (NYSE:HPE) ahead of the upcoming Q4 results announcement, noting they don’t expect surprises, but demand is weakening.

The analysts anticipate the company to report in-line Q4 results and reiterate its fiscal 2023 outlook provided at its Securities Analyst Meeting (SAM) on October 19th. The company’s 2023 outlook includes revenue growth of 2-3% (adjusted for FX), EPS of $1.96-2.04 and free cash flow of $1.9-2.1 billion.

Specifically, for Q1, the analysts expect year-over-year growth for the company’s core businesses (Compute/Storage) with risks to the downside due to slowing demand and continued supply challenges.

The analysts also expect gross margins to trend lower sequentially due to pricing pressure. According to the analysts, they will monitor backlog levels, orders growth and as-a-Service ARR to gauge the health of the business for the remainder of 2023.