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Tag: HPE

  • Hewlett Packard Enterprise Co. (HPE) Earnings & Guidance Ambushed by Geopolitical & Economic Factors

    The geopolitical and economic landscape of the world has been tough so far into 2022. Covid-19 lockdowns in China have been impacting the global supply chain immensely, but the Russian invasion of Ukraine has made things worse. The resulting economic landscape has huge peaks named inflation, interest rates, and the wider market turmoil. Currency headwinds have been even harsher as the Fed rolls up its sleeves to battle inflation that is now soaring beyond limits. The threat of a recession remains imminent as the U.S. economy sees interest and inflation crossing limits in over 40 years.

    Wall Street executives, Goldman Sachs analysts as well as Wells Fargo, all have joined in on the possibility of a recession being dangerously close. While Nasdaq is in the bear market territory, the S&P 500 composite has veered extremely close to it. Even the wider indicator of the stock market, S&P 500 had a brush down to the bear market in the second half of May when its losses extended beyond 20% temporarily.

    However, despite the imminent threat of a recession and deteriorating economic conditions, Hewlett Packard Enterprise Co. (HPE)’s CEO had said he wasn’t seeing it in the tech giant’s business. During the World Economic Forum in Davos, Switzerland, the CEO Antonio Neri shared his optimism about the continued growth of HPE. In contrast to his optimistic views for the company, the latest earnings report disappointed investors very much. The enterprise hardware and services company missed the expectations for Q2 fiscal 2022 and trimmed forecasts for the full year. Consequently, HPE stock plunged by 7.03% in the premarket on June 2, 2022. Thus, the stock is currently priced at a value of $14.67 per share.

    HPE’s Q2 Fiscal 2022

    Hewlett Packard Enterprise Co. is a tech giant selling a vast range of products and services in cloud storage, high-performance computing, AI, software, and servers. The company boasts 55,000 customers globally and 10 million devices are connected by its edge networking.

    The company’s latest earnings report depicted the impacts of supply chain disruptions due to China lockdowns, its exit from Russia, and unfavorable currency movements. The Russia and Belarus exit cost it $129 million in the second quarter after HPE stopped all shipments and sales to the region in February 2022. Combined with the China lockdowns, the total impact was $250 million, according to Mr. Neri.

    Bank of America Global Research analyst Wamsi Mohan had predicted the harsh impact of the geopolitical and economic situation well before the earnings. The analyst had downgraded the stock from a Buy to Neutral late in May.

    For the quarter ended April 30, 2022, HPE came out with net revenue of $6.7 billion, which rose by just a fraction (0.2%) against the comparable period. This came below the analysts’ expectations of $6.81 billion in sales for the quarter.

    A miss on estimates was also the quarterly earnings, which declined 4% YOY to 44 cents a share. The consensus estimate for quarterly earnings was 45 cents per share.

    Cash flow from operations went down by $433 million to $379 million, and free cash flow decreased by $579 million to $(211) million.

    Orders growth remained robust with an increase of 20% YOY but the company is facing troubles in converting the demand into sales due to component and logistics issues.

    The performance of the company’s various business segments in the quarter is as mentioned in the below table:

    Source: Q1 Presentation

    HPE’s Outlook

    For the fiscal Q3 2022, the company sees its adjusted earnings to be $0.44-$0.54 per share. Analysts had their earnings expectations pegged at $0.51 per share for the quarter.

    For the full year, HPE said it estimates the adjusted diluted earnings to be $1.96-$2.10 per share, and revenues are expected to grow by 3-4% on an adjusted currency basis. Furthermore, the free cash flow was guided to be $1.8-$2.0 billion for the fiscal year.

    The company, however, reaffirmed its compound annual growth of 35% to 45% from the fiscal year 2021 to the fiscal year 2024.

    Conclusion

    While the tech giant HPE was initially seeing not much impact from the macroeconomic turmoil, its latest earnings show a different picture. The geopolitical instability in Europe, China’s Covid lockdowns, and currency changes impacted the quarterly results in a negative way. The company did see great order momentum, but the supply chain constraints translated into difficulties in keeping up with it. Although the company does see some more impediments in the near term, it remains confident about progressing well into the future.

  • Early Morning Vibes: Top 4 Stocks To Buy Right Now

    Early Morning Vibes: Top 4 Stocks To Buy Right Now

    US stock indices closed with growth on Monday. The last week rally in US government bond yields stalled, easing investors’ concerns about the prospects of raising interest rates.

    The S&P 500 jumped 90.67 points, or 2.4%, to 3901.82, the largest percentage gain in a single session since June 5 last year. The Dow Jones Industrial Average rose 603.14 points, or 1.9%, to 31,535.51, and the Nasdaq Composite rose 396.48 points, or 3%, to 13588.83.

    All three indices declined last week under pressure from the plummeting tech sector. Their recovery on Monday took place against the backdrop of a decrease in the yield of 10-year US Treasury bonds (a benchmark for the cost of borrowing in world markets) from Friday 1.459% to 1.444%.

    The stock market, especially the tech sector, has been hit in recent sessions by volatility in government bond markets. The rise in long-term bond yields, fueled by an improved economic outlook, makes technology stocks and other fast-growing companies less attractive to investors. Even with Monday’s gains, the Nasdaq remains 3.6% below its Feb 12 record close.
     Yields on bonds soared higher last week, calling into question the prospect of continued low-interest rates that saw the rally in equities last year. In addition, the likelihood of the end of the loose monetary policy used by the Fed to fight inflation has increased.

    After the House passed a $ 1.9 trillion package of measures, Biden called on the Senate for swift action over the weekend. Democrats are aiming to formalize the package by March 14, when some federal unemployment benefits are due to expire.Some investors are worried that rising government bond yields and mounting inflationary pressures could destabilize the stock market, especially in light of the expected huge federal spending as part of Biden’s stimulus package.

    Meanwhile, according to data released on Monday, manufacturing activity in the US grew at the fastest pace since the start of the pandemic in February. The purchasing managers’ index (PMI) of the Institute of Supply Management for February was 60.8 points against 58.7 in January. Economists’ forecast suggested that the index will be 58.9 points. Index readings above 50 indicate increased activity.
     Several Fed officials are due to speak later this week, and investors will be watching these speeches closely for signs of concern about government bond yields.

    The improvement in investment sentiment was noticeable outside the United States as well. Thus, the pan-European index Stoxx Europe 600 rose by 1.8%. The growth was led by shares of retail and travel companies, whose fate depends on the recovery of economic activity.

    Today Top Movers

    Great Elm Group Inc (GEG) share price surged 96.52% to $6.78 in pre-market trading today. 

    TherapeuticsMD Inc. (TXMD) stock soared 16.26% to $1.68 in the pre-market trading. 

    Inuvo Inc. (AMEX: INUV) shares are trading up 20.61% at $1.58 at the time of writing. 

    STRATA Skin Sciences Inc. (SSKN) grew over 56.07% at $2.7 in pre-market trading today after declaring inducement grants under Nasdaq Listing Rule 5635(c)(4).

    Top Upgrades & Downgrades

    KeyBanc turned bullish on Akamai Technologies Inc. (AKAM), upgrading the stock to “Overweight” and assigning a $119.0 price target, representing a potential upside of 24.04% from Monday’s close. 

    Repay Holdings Corporation (RPAY) has won the favor of Wells Fargo’s equity research team. The firm upgraded the shares from Equal-Weight to Overweight and moved their price target to $29. 

    Morgan Stanley (MS) received an upgrade from analysts at Daiwa, who also set their one-year price target on the stock to $86. They changed their rating on MS to Outperform from Neutral in a recently issued research note. 

    Earlier Tuesday SVB Leerink reduced its rating on Athenex Inc. (ATNX) stock to Market Perform from Outperform and assigned the price target to $5. 

    JPMorgan analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Viatris Inc. (VTRS) has been changed to Neutral from Overweight and the new price target is set at $18. 

    Analysts at B. Riley Securities downgraded Service Properties Trust (SVC)’s stock to Neutral from Buy Tuesday.

    Latest Insider Activity

    Facebook Inc. (FB) COB and CEO Zuckerberg Mark announced the sale of shares taking place on Feb 26 at $261.38 for some 44,750 shares. The total came to more than $11.7 million. 

    Morphic Holding Inc. (MORF) Director Omega Fund V, L.P. sold on Mar 01 a total of 2,551,555 shares at $45.93 on average. The insider’s sale generated proceeds of almost $0.32 million. 

    Abbott Laboratories (ABT) Director Kumbier Michelle declared the purchase of shares taking place on Feb 23 at $122.50 for some 2,040 shares. The transaction amount was around $0.25 million. 

    United Parcel Service Inc. (UPS) Director Hewett Wayne M. bought on Feb 24 a total 868 shares at $159.82 on average. The purchase cost the insider an estimated $99,887.

    Important Earnings

    Top US earnings releases scheduled for today include Kopin Corporation (KOPN). It will announce its Dec 2020 financial results. The company is expected to report earnings of -$0.01 per share from revenues of $21.89M in the three-month period. 

    Analysts expect Hewlett Packard Enterprise Company (NYSE:HPE) to report a net income (adjusted) of $0.41 per share, when the company releases its quarterly results shortly. Revenue for the fiscal quarter ended Jan 2021 is predicted to come in at $9.33M. 

    fuboTV Inc. (FUBO), due to announce earnings after the market closes today, is expected to report earnings of -$0.73 per share from revenues of $93.94M recently concluded three-month period.

  • 15 Best Communication Equipment Industry Stocks You Should Add In Your Portfolio

    15 Best Communication Equipment Industry Stocks You Should Add In Your Portfolio

    The Communication Equipment industry is engaged in the making of telecommunication equipment for various companies. This industry is involved in the manufacturing of those products which facilitates the people and helps them to communicate with each other. This industry has a diverse customer base. Competition between the companies in the communication equipment industry is intense. Communication Equipment Industry has experienced a period of healthy growth in the recent few years. However, the condition changed in 2020.

    The demand oof communication equipment continuously increasing this year as an ongoing pandemic forced people to stay at home and work from home. So, the demand for communication equipment also increasing in 2020. Companies in this industry are offering television (TV) signal encoding, transcoding, digital transport, and broadband product solutions, and some companies are involved in the selling of Internet Protocol-based networking and other products related to the communications and information technology industry.

    Here are the top 15 companies in the Communication Equipment Industry that need your attention:

    Blonder Tongue Laboratories Inc. (AMEX: BDR)

    Blonder Tongue Laboratories Inc. (AMEX: BDR) shares were trading up 34.04% at $1.50 at the time of writing on Tuesday. Blonder Tongue Laboratories Inc. (AMEX: BDR) share price went from a low point around $0.38 to briefly over $3.80 in the past 52 weeks, though shares have since pulled back to $1.50.

    This company has announced that the US Patent and Trademark Office (USPTO) has issued a patent, US10,805,660, for certain technologies within Blonder Tongue’s DOCSIS Data (DMM) series of products. BDR market cap has remained high, hitting $13.22M at the time of writing, giving it a price-to-sales ratio of more than 0.

    Cisco Systems Inc. (NASDAQ: CSCO)

    Cisco Systems Inc. (NASDAQ: CSCO) last closed at $39.81, in a 52-week range of $32.40 to $50.28. Analysts have a consensus price target of $48.17. Cisco Systems Inc. (CSCO), Qwilt, and Digital Alpha (DA) revealed earlier that how together they are disrupting the commercial Content Delivery Network (CDN) market with a new as-a-service offering based on Open Caching, with BT as the flagship customer.

    Nokia Corporation (NYSE: NOK)

    Nokia Corporation (NYSE: NOK) stock soar by 0.25% to $4.04. The most recent rating by Raymond James, on September 08, 2020, is at an Mkt perform. Nokia Corporation (NOK) and Spark New Zealand has announced the launch of 5G in Auckland. Powered by Nokia, Spark’s 5G radio network goes live to coincide with a major international sailing event. NOK market cap has remained high, hitting $22.15 Billion at the time of writing.

    Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC)

    Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) shares headed falling, lower as much as -1.20% after Invitation to media and analyst briefing for Ericsson Q3 2020 report. The most recent rating by Cowen, on March 30, 2020, is at an Outperform. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) market capitalization has remained high, hitting $35.75 billion at the time of writing.

    Hewlett Packard Enterprise Company (NYSE: HPE)

    Hewlett Packard Enterprise Company (NYSE: HPE) fall -1.51% after losing more than -$0.15 on Tuesday. The Edge Opportunity Is Real, Yet Organizations Cite Hurdles to Unlocking Its Full Potential. Hewlett Packard Enterprise Company (HPE) earlier revealed that it is delivering the highest level of security for a growing number of U.S. federal and public sector customers that prefer U.S. sourced products with verifiable cyber assurance by expanding and further securing its supply chain.

    CommScope Holding Company Inc. (COMM)

    CommScope Holding Company Inc. (COMM) last closed at $8.98, in a 52-week range of $5.50 to $15.79. CommScope High-Density Remote PHY Shelf Selected by Comcast for Distributed Access Architecture Transformation. Analysts have a consensus price target of $13.21. CommScope Holding Company Inc. (COMM) has moved up 63.27% from its 52-weeks low and moved down -43.13% from its 52-weeks high. COMM market capitalization has remained high, hitting $1.82 billion at the time of writing.

    Sonim Technologies Inc. (SONM)

    Sonim Technologies Inc. (SONM) stock drop by -2.47% to $0.67 after New Sonim SOS App Delivers Powerful Safety-First Capabilities to Ultra-Rugged Devices. The most recent rating by Oppenheimer, on October 31, 2019, is at a Perform. Sonim Technologies Inc. (SONM) has moved up 33.64% from its 52-weeks low and moved down -82.95% from its 52-weeks high. SONM market capitalization has remained high, hitting $44.94 Million at the time of writing.

    Viavi Solutions Inc. (NASDAQ: VIAV)

    Viavi Solutions Inc. (NASDAQ: VIAV) shares headed falling, lower as much as -3.19%. The most recent rating by JP Morgan, on June 01, 2020, is at an Overweight. Viavi Solutions Inc. (VIAV) is scheduled to announce its fiscal first quarter 2021 financial results for the period ended October 3, 2020, on Thursday, November 5, 2020, after the close of market.

    Juniper Networks Inc. (NYSE: JNPR)

    Juniper Networks Inc. (NYSE: JNPR) fall -1.28% after losing more than -$0.29 on Tuesday. Juniper Networks Inc. (JNPR) announced today that it has been selected by Telefónica Spain, a leading global service provider, to secure the mobile backhaul of its growing 5G network. This company has a total market capitalization of $7.40 billion at the time of writing.

    Ciena Corporation (NYSE: CIEN)

    Ciena Corporation (NYSE: CIEN) last closed at $41.68, in a 52-week range of $30.58 to $61.51. Analysts have a consensus price target of $53.06. Ciena Corporation (CIEN) has moved up 36.30% from its 52-weeks low and moved down -32.24% from its 52-weeks high. CIEN market capitalization has remained high, hitting $6.33 Billion at the time of writing.

    Knowles Corporation (NYSE: KN)

    Knowles Corporation (NYSE: KN) Shares headed falling, lower as much as -0.91% after Knowles Announces Preliminary Third Quarter 2020 Revenue Above High End of Guidance Range and Sets Date for Q3 Earnings Call. The most recent rating by Craig Hallum, on September 04, 2020, is at a Buy.

    Maxar Technologies Inc. (NYSE: MAXR)

    Maxar Technologies Inc. (NYSE: MAXR) stock soar by 3.69% to $29.80 after Genasys Inc. Announces Record Fiscal Year Domestic Law Enforcement Sales. The most recent rating by TD Securities, on August 06, 2020, is at a Buy. Maxar Technologies Inc. (MAXR) has a current ratio of 0.90.  It has a total market capitalization of $1.80 billion at the time of writing.

    Boxlight Corporation (NASDAQ: BOXL)

    Boxlight Corporation (NASDAQ: BOXL) stock drop by -1.18% to $1.68. The most recent rating by National Securities, on May 19, 2020, is at a Buy. Boxlight Corporation (BOXL) has earlier announced the acquisition of Sahara Presentation Systems PLC, a leader in distributed and manufactured AV solutions. The total purchase price was GBP 74,000,000 (approximately USD 94,900,000) in the form of GBP 52,000,000 (approximately USD 66,700,000) cash and GBP 22,000,000 (approximately USD 28,200,000) preferred stock.

    Inseego Corp. (NASDAQ: INSG)

    Inseego Corp. (NASDAQ: INSG) fall -1.06% after losing more than -$0.1 on Tuesday. Inseego Corp. (INSG) revealed that its Board of Directors approved an increase in the number of authorized directors on the Board from five to six and named Christopher Lytle to the Board to fill the newly created directorship, effective October 1, 2020.

    Vislink Technologies Inc. (NASDAQ: VISL)

    Vislink Technologies Inc. (NASDAQ: VISL) last closed at $1.38, in a 52-week range of $0.66 to $8.94. Vislink Technologies Inc. (VISL) revealed earlier the retainment of KCSA Strategic Communications (KCSA) to develop comprehensive strategic communications and investor-focused program to increase awareness of Vislink and communicate its mission of reliable connectivity to its stakeholders and the marketplace.