These announced buybacks may seem dumb but there's a reason for them. HP apparently believes the company is undervalued, which is not unreasonable considering their 8% profit margin and very low P/E relative to competitors like Dell. So by reducing the number of outstanding shares, HP is signaling confidence in its long-term prospects, aiming to ultimately increase EPS and drive up the stock price over time. It's a tax efficient way to increase their own value.
Hewlett Packard Enterprise
HPE
NYSE
IPO2015
about HPE
Hewlett Packard Enterprise provides IT infrastructure and services including servers, storage solutions, networking equipment, cloud services, consulting, and support, helping organizations modernize and manage their technology needs.
| type | open | high | low |
market cap |
volume |
|---|---|---|---|---|---|
| stock | $24.37 | $24.67 | $23.84 | $32.1B | 31.52M |
| eps |
price to earnings |
price to sales |
operating margin |
profit margin |
yield |
| +$0.21 | 114.38 | 3.74 | 2.70% | 3.34% | 2.37% |
EARNINGS TODAY
https://www.hp.com/us-en/newsroom/press-rel...
- Q2 diluted EPS of $0.42, down a whopping 31% from the prior year
- Q2 non-GAAP EPS of $0.71, down 13% from prior year
But hey at least we still have $400 million in buybacks and dividends, certainly wouldn't make sense to invest that back into the flailing company and fixup the revenue streams.