Market Overview

Earnings Outlook for Dell Technologies

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On Tuesday, November 24, Dell Technologies (NYSE: DELL) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Dell Technologies reporting earnings of $1.4 per share on revenue of $21.85 billion. In the same quarter last year, Dell Technologies announced EPS of $1.75 on revenue of $22.93 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 20.0%. Sales would be down 4.7% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.39 1.01 2.02 1.62
EPS Actual 1.92 1.34 2 1.75
Revenue Estimate 22.52 B 20.83 B 24.02 B 23.04 B
Revenue Actual 22.77 B 21.95 B 24.13 B 22.93 B

Stock Performance

Shares of Dell Technologies were trading at $68.35 as of November 20. Over the last 52-week period, shares are up 30.4%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dell Technologies is scheduled to hold the call at 17:30:00 ET and can be accessed here.

 

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Posted-In: Earnings