The San Jose, Calif., company expects adjusted earnings to climb to between $1.56 and $1.76 a share, up 10% at the midpoint. Analysts surveyed by FactSet are expecting earnings of $1.50 per share for the fiscal year.
"While the global pandemic is unlike any crisis we have ever faced, it has served as a catalyst, making digital transformation a strategic imperative for enterprises," HPE Chief Executive Antonio Neri said.
At last check HPE shares were off 1.5% at $9.74.
Here is what Wall Street is saying.
Analysts at Morgan Stanley affirmed their equal-weight rating on HPE while raising their price target to $12 a share from $11. The company's plan to stabilize its core compute and storage business "now appears more reasonable," the investment bank said, according to Bloomberg.
While demand recovery is a positive sign, the firm also said that "sustainable long-term growth remains a show-me story."
Citi also left its sell rating unchanged with a $9 price target. "HPE is adjusting their calculations to exclude stock-based compensation," the firm said, according to Bloomberg.
The firm said HPE is focused on growth via organic means as well as mergers and acquisitions, "a big change from the past year of sizeable stock buybacks."
Evercore maintained its in-line rating and $11 price target. The coronavirus pandemic and subsequent lockdown have "accelerated the pace of digital transformation and the company expects spending to address this imperative to double over the next five years."