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
trading on NYSE
since 2015
$20.90
(Δ 2.26%)
+$0.46 since open
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 | $20.89 | $21.16 | $20.60 | $27.94B | 18.80M |
| eps | p/e | p/s |
operating margin |
profit margin |
yield |
| -$0.82 | 87.08 | 3.62 | -14.54% | -13.77% | 2.49% |
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.