Dell Technologies (NYSE: DELL) is scheduled to report its latest earnings on Tuesday after the market closes. Investors will be watching revenue growth, earnings per share and the company’s outlook for signs of continued momentum in its computer hardware and IT solutions business.
What to Expect From Dell’s Earnings Report
Dell exceeded analysts’ revenue expectations in the previous quarter, reporting revenue of $43.84 billion, an 87.5% increase from the same period a year earlier. The company also surpassed consensus EPS estimates and delivered a strong beat against its guidance for the following quarter.
For the current quarter, analysts expect Dell revenue to rise 51.5% year over year. That would represent a significant acceleration from the 19% growth reported in the same quarter last year.
Analyst Estimates and Revenue Outlook
Analysts covering Dell have generally reaffirmed their estimates over the past 30 days, indicating that they expect the company’s business to remain on track heading into the earnings release. However, Dell has missed Wall Street’s revenue expectations several times during the past two years.
Recent results from companies in the hardware and infrastructure sector may offer additional clues about Dell’s potential performance. HP reported year-over-year revenue growth of 12.5%, beating analysts’ expectations by 7.5%. Everpure reported revenue growth of 37.7%, exceeding estimates by 7.7%.
HP shares fell 3.5% after its results, while Everpure also declined 10%. Investors can read the full analysis of HP’s results and Everpure’s results for additional context.
Dell Stock Performance Ahead of Earnings
Shares in the hardware and infrastructure sector have risen 1.8% on average over the past month, showing relatively steady performance ahead of earnings. Dell stock has gained 6.3% over the same period.
Dell is entering the earnings report with an average analyst price target of $510.26, compared with its current share price of $456.25.
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Source: finance.yahoo.com
