Earnings Preview: Dell Inc. (DELL)

Dell Inc.

is currently lower on the session by 1.19%, trading at $12.04. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q2 earnings per share of $0.30 on revenue of $15.21 billion. These estimates have remained the same over the past 90 days. The Whisper Number for DELL is $0.32. • Guidance The Street is looking for Q3 EPS of $0.32 on revenue of $15.49 billion. The full year 2010 estimates are $1.26 per share on revenue of $61.78 billion; FY 2011 is at $1.46 per share on revenues of $65.39 billion. • Technical Picture Dell is, more or less, in a five-year downtrend; over the past twelve months, the stock has drifted lower from the $14.00 level albeit with rallies along the way, some significant. Over the near-term the stock has been selling off from the $17.50 level and is currently trading below the 50-day moving average. The $12.00 is a key pivot point, with the potential for huge moves from the level either way. • Volatility Both historical volatility and implied volatility have been down-trending over the past three months after a spike higher in mid-May. Currently HI is at 32% and IV is at 40%. The front month $12.00 straddle is trading at 97.74%; the September $12.00 straddle is trading at 42.30% Dell Inc. is a holding company, which conducts its business globally, through its subsidiaries. It offers a range of product categories, including mobility products, desktop personal computers, software and peripherals, servers and networking, and storage.