Computer hardware and IT solutions company Dell (NYSE: DELL) will be reporting results this Thursday after the bell. Here’s what to look for.
Dell beat analysts’ revenue expectations last quarter, reporting revenues of $33.38 billion, up 39.5% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS guidance for next quarter estimates and a solid beat of analysts’ revenue estimates.
Is Dell a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dell’s revenue to grow 54.4% year on year, improving from the 5.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dell has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Dell’s peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ delivered year-on-year revenue growth of 755%, beating analysts’ expectations by 30%, and Diebold Nixdorf reported revenues up 5.6%, topping estimates by 3.5%. IonQ traded down 9.3% following the results while Diebold Nixdorf was also down 6.1%.
Read our full analysis of IonQ’s results here and Diebold Nixdorf’s results here.
There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 6.6% on average over the last month. Dell is up 43.4% during the same time and is heading into earnings with an average analyst price target of $218.09 (compared to the current share price of $309.77).
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