Did you analyze how Hewlett Packard Enterprise (HPE) performed in its international business for the quarter ending October 2024? Given this, it becomes essential to scrutinize trends in international earnings to assess its financial strength and future growth potential.
In today’s increasingly interconnected global economy, a company’s ability to access international markets can be a critical factor in shaping its overall financial health and growth trajectory. For investors, understanding a company’s dependence on foreign markets provides insight into a company’s earnings sustainability, ability to take advantage of diverse economic cycles, and overall growth potential. It’s becoming more and more important.
Participation in the global economy serves as a defense against domestic economic difficulties and as a pathway to a more rapidly developing economy. However, it also comes with the complexity of dealing with currency fluctuations, geopolitical risks, and various market trends.
While analyzing HPE’s performance last quarter, we discovered some interesting trends in revenue from its international division, which are often modeled and monitored by Wall Street analysts.
In the most recent quarter, the company’s total revenue reached $8.46 billion, an increase of 15.1% from the year-ago period. Next, to understand the importance of HPE’s international presence, let’s take a look at the breakdown of HPE’s international revenue.
During the quarter, Europe, Middle East and Africa contributed $2.75 billion in revenue, accounting for 32.47% of total revenue. This represented a surprise of -7.43% compared to the consensus estimate of $2.97 billion. Looking back, Europe, Middle East and Africa contributed $2.56 billion (33.14%) in the last quarter and $2.55 billion (34.63%) in the year-ago period.
Asia Pacific and Japan accounted for 21.66% of the company’s total revenue for the quarter, amounting to $1.83 billion. Revenue from the region represented a surprise of +1.06%, with Wall Street analysts collectively expecting $1.81 billion. Compared to the previous quarter and the same period last year, Asia Pacific and Japan contributed $1.75 billion (22.63%) and $1.57 billion (21.34%) to total revenue, respectively.
Wall Street analysts expect Hewlett Packard Enterprise to post revenue of $7.82 billion for the current fiscal quarter, an increase of 15.7% from the same period last year. The expected contribution to this revenue is 34.7% and 21.2% from Europe, Middle East, Africa, Asia Pacific and Japan, representing $2.71 billion and $1.66 billion, respectively.
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