It's been a pretty great week for Hewlett Packard Enterprise Company (NYSE:HPE) shareholders, with its shares surging 13% to US$23.95 in the week since its latest annual results. Revenues were US$30b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.93 were also better than expected, beating analyst predictions by 16%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

After the latest results, the 14 analysts covering Hewlett Packard Enterprise are now predicting revenues of US$32.5b in 2025. If met, this would reflect a satisfactory 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to drop 11% to US$1.75 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$32.1b and earnings per share (EPS) of US$1.78 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.3% to US$23.80, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Hewlett Packard Enterprise, with the most bullish analyst valuing it at US$29.00 and the most bearish at US$19.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Hewlett Packard Enterprise's rate of growth is expected to accelerate meaningfully, with the forecast 7.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hewlett Packard Enterprise is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Hewlett Packard Enterprise. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hewlett Packard Enterprise going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Hewlett Packard Enterprise you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.