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After a promising quarter, HPE is moving to Houston

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Miguel A. Rodriguez
Miguel A. Rodriguez
02 December 2020
Hewlett Packard Enterprise is trading Silicon Valley for Houston

It seems like the end of a quarter, and the beginning of another means a change of location for some companies, this being the case for Hewlett Packard Enterprise.

The tech company is shifting its focus from San Jose to Houston, leaving Silicon Valley behind. According to the statement released by the company, "HPE's largest U.S. employment hub, Houston, is an attractive market to recruit and retain future diverse talent and is where the company is currently constructing a state-of-the-art new campus." From the experts’ point of view, the pandemic turned out to be a valid reason for companies to leave Silicon Valley, some of them being Dropbox and Palantir.

Along with the decision came the Q4 2020 earnings report. In the past quarter, HP had an adjusted EPS of 37 cents, ahead of the market's 34 cents. The revenues came in at $7.21 billion, topping the $6.88 billion forecasted.  The figures marked a return to the pre-pandemic levels and a 6% increase from the revenues posted in Q3 2020. On January 6, 2021, the company will pay dividends of 12 cents per share.

For the future, the company expects its EPS to reach a high of 44 cents.

After the news hit the wire, the company's share price gained more than 1%.

Sources: businesswire.com, cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.