Hewlett Packard Enterprise Co (NYSE:HPE) is set to report fiscal second-quarter earnings after the close on Monday, June 1. According to Zacks Research, analysts expect earnings of 54 cents per share on revenue of $9.82 billion, representing year-over-year growth of 42.1% and 28.7%, respectively.
The options pits are pricing in a post-earnings swing of 12.9%, more than double the stock's historical earnings move of 5.8% over the last eight quarters. HPE has closed five of its last eight post-earnings sessions higher, though the shares logged a 3.3% drop following their March report.
On the charts, HPE has been shooting higher since late February, recently hitting a record high of $38.58 on May 26. The stock is flat for the week currently, but if it ekes out a weekly win it will have been for the 12th week in a row. Year to date, the equity is up 55.9%.
Short interest fell 67.8% over the last two reporting periods, though the 67.75 million shares sold short still account for 5.13% of HPE's available float. At the stock's average pace of trading, it would take shorts 3.83 days for traders to buy back their bearish bets.
An upbeat report could shift analyst sentiment in the stock's favor. Currently, 11 of the 20 brokerages covering the equity maintain tepid "hold" ratings, while the consensus 12-month price target of $28.64 is a 23.7% discount to its current prech.