Hewlett Packard Enterprise Co (NYSE:HPE)
One major New York Stock Exchange traded company is due to report earnings on August 23, 2016. Hewlett Packard Enterprise, formerly known as The Hewlett-Packard Company (NYSE:HPQ)– which was founded in a one-car garage in Palo Alto by William “Bill” Redington Hewlett and David “Dave” Packard, and initially produced a line of electronic test equipment. HP was the world’s leading PC manufacturer from 2007 to Q2 2013, after which Lenovo remained ranked ahead of HP. It specialized in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines included personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products.
Today, the company is based in Palo Alto, California, founded on 1 November 2015 as part of splitting of the Hewlett-Packard company. HPE is a business-focused organization with four divisions: Enterprise Group, which works in servers, storage, networking, consulting and support; Services; Software; and Financial Services.
The split was structured so that the old Hewlett-Packard changed its name to HP Inc. and spun off Hewlett Packard Enterprise as a newly created company. HP Inc., which retained the old HP’s personal computer and printing business, retained the old HP’s stock-price history and the original NYSE ticker symbol for Hewlett-Packard, while Enterprise trades under its own ticker symbol, “HPE.” According to notes from 2015, HPE’s revenue was slightly less than that of HP Inc.
The Price Chart
Above, please see the daily chart of prices going back to January 2016. Notice the strong, nearly 45 degree angle of price trend rising above the stocks moving averages. With earnings due to be reported on August 23,2016, many investors and stock traders will be scouring the report to find reasons to buy for long positions or go short (like a hedge fund) if earnings disappoint.
Company Developments & Comments
Shares of Silicon Graphics International (NASDAQ:SGI) were up 28% on August 11th 2016 after-hours on news that it is to be acquired by Hewlett Packard Enterprises HPE for $275 million, or $7.75/share.
“At HPE, we are focused on empowering data-driven organizations,” said Antonio Neri, executive vice president and general manager of Hewlett Packard Enterprise. “SGI’s innovative technologies and services, including its best-in-class big data analytics and high performance computing solutions, complement HPE’s proven data center solutions designed to create business insight and accelerate time to value for customers.”
Although Intel (NASDAQ:INTC) currently dominates the HPC market, Hewlett Packard hopes to use its synergies with SGI to “strengthen the leading position and financial performance of the combined businesses,” as per the official announcement.
Hewlett Packard expects the acquisition to have no effect on earnings in the first full year following its closing, and then an accretive effect from there onward. The company expects the deal to close in the first quarter of 2017.- Zacks.com
Company Profile
Hewlett Packard Enterprise Company provides technology solutions to business and public sector enterprises. It operates through Enterprise Group, Software, Enterprise Services, and Financial Services segments. The Enterprise Group segment offers industry standard servers and business critical systems to address the array of its customers’ compute needs; storage products, such as 3PAR StoreServ, a storage platform; and networking products comprising switches, routers, points, controllers, wireless local area network, and network management products. This segment also provides software-defined networking and unified communications capabilities; and support and consulting services.
The Software segment offers software to capture, store, explore, analyze, protect, and share information and insights within and outside organizations; HP Vertica, an analytics database technology for machine, structured, and semi-structured data; and HP IDOL, an analytics tool for human information, as well as solutions for archiving, data protection, eDiscovery, information governance, and enterprise content management. This segment also provides application delivery management, enterprise security, and IT operations management software products. The Enterprise Services segment offers technology consulting, outsourcing, and support services in infrastructure, applications, and business process domains; and application and business services that help clients to develop, revitalize, and manage their applications and information assets. The Financial Services segment provides leasing, financing, IT consumption and utility programs, and asset management services. The company markets and sells its products through resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. Hewlett Packard Enterprise Company is headquartered in Palo Alto, California.-