Yahoo Finance Dell Technologies (DELL) to Post Q3 Earnings: What's in Store?
Dell Technologies DELL is set to report its third-quarter fiscal 2023 results on Nov 21.
Dell expects fiscal third-quarter revenues in the range of $23.8-$25 billion, suggesting an 8% decline on a year-over-year basis at the midpoint. Earnings are expected between $1.53 and $1.79 per share, flat on a year-over-year basis at the midpoint.
The Zacks Consensus Estimate for revenues is pegged at $24.34 billion, suggesting 14.3% growth from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings is pegged at $1.59 per share, indicating a 32.91% decline from the year-ago quarter’s figure. The consensus estimate for earnings has declined 1.2% in the past 30 days.
Dell's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one. The company delivered a trailing four-quarter earnings surprise of 6.58% on average.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Let's see how things have shaped up for DELL before this announcement.
Factors to Watch
Although the global chip shortage and supply-chain constraints are leading to unpredictability in the technology sector, Dell is expected to have benefited from the ongoing digital transformation and strong demand environment in the to-be-reported quarter.
However, unfavorable foreign exchange is expected to have been a headwind.
Dell is expected to have benefited from strong growth in servers and networking revenues in the to-be-reported quarter. IT spending is now expected to be higher for servers and networking, as well as storage solutions. This is expected to have benefited Infrastructure Solutions Group revenues in the to-be-reported quarter.
Nevertheless, Client Solutions Group revenues are expected to have suffered from a declining PC demand, both in the customer and enterprise business segments.
Per Gartner, worldwide PC shipments in the third quarter of 2022 witnessed a year-over-year decrease of 19.5%, reaching 68 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.
This Zacks Rank #5 (Strong Sell) company shipped 12.021 million units, witnessing a 21.1% year-over-year decline in the third quarter of 2022, per the Gartner report.
Lenovo, HP and Apple shipped 17.114 million, 12.706 million and 5.795 million units, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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