Hewlett Packard Enterprise Co (NYSE: HPE) in the fourth quarter FY 16 reported 7% fall in the revenue to $12.5 billion. HPE has reported 78% fall in the net income for the fourth quarter to $302 million, compared with profit in the year-earlier period of $1.39 billion. The adjusted earnings per share (EPS) in the Q4 FY 16 $0.61, which is within the range of the forecasts HPE gave and also as per the consensus estimates by the analysts. Hewlett Packard had provided the forecasts for earnings per share for Q4 FY 16 to be in the range of $0.58-$0.63. Hewlett Packard’s cash flow from operations rose 44% to $2.2 billion in the fourth quarter.

HPE is created by the breakup of Hewlett-Packard Co. a year ago. Moreover, Hewlett Packard merging their 100,000-employee computing services business with operations of Computer Sciences Corporation. Additionally, Hewlett Packard has announced plans for an $8.8 billion deal and merge most of its software operations with Britain’s Micro Focus International PLC. This can lead to dividend announcement, boosting share value further with buybacks, and will positions Hewlett Packard to responsibly acquire niche firms to fill specific product and service needs.

Q4 and FY 16 Financial Performance (source: Company Reports)

For fiscal year of 2016, Hewlett Packard in the first year of standalone Company has reported a 4% fall in the revenue to $50.1 billion as compared to fiscal year of 2015, but 2% up when adjusted for divestitures and currency. Hewlett Packard reported an EPS of $1.92 in FY 16, which is within the range of $1.90-$1.95 projected by the company. Moreover, Hewlett Packard in FY 16 has returned $3 billion to the shareholders in the form of share repurchases and dividends.

For the first quarter of FY 17, Hewlett Packard expects the adjusted earnings per share to be in the range of $0.42-$0.46, which is below the analysts’ expectation. Additionally, for FY 17 Hewlett Packard expects the adjusted earnings per share to be in the range of $2-$2.10.

Hewlett Packard stock has rose 50.5% during this year to date (as of Nov 22, 2016; Source: Google Finance) driven by dividends and stock buybacks. According to tipranks.com, 15 analysts has covered the stock while recommend a “Moderate Buy”. On the other hand, HPE has an average price target of $23.75, which is a limited further upside of 3.85%. Recently Oppenheimer issued a “Buy” rating with a price target of $25 while Robert W. Baird issued a “Hold” rating.