Earnings Preview: Dell's EPS, Revenue Expected to Rise

Dell (NASDAQ: DELL) unveils its next round of earnings this Tuesday, November 15, 2011. Here is Benzinga's everything-that-matters guide for this Tuesday's third quarter earnings announcement.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 46 cents/share and revenues of $15.69 billion. Dell's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 45 cents/share on revenues of $15.39 billion. We'll have to wait for Tuesday to see if the company reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

(Estimates Source: Zacks)

Stock Performance:

Shares of Dell were trading at $14.80 as of November 9, 2011. Shares are up 9.2% year to date. For a full 12 months, the return has declined by 7.7%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts is a Hold. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Dell's peers.

• Apple (NASDAQ: AAPL): Moderate Buy with a $7.05 recent quarter EPS
• Cray (NASDAQ: CRAY): Moderate Buy with a -$0.33 recent quarter EPS
• EMC (NYSE: EMC): Moderate Buy with a $0.31 recent quarter EPS
• Hewlett-Packard Company (NYSE: HPQ): Hold with a $1.10 recent quarter EPS

The computers-microprocessors company's industry has seen price/earnings growth of 0.9% during the current fiscal year.

Finally, a description of the company's main areas of operation: Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Dell earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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