S&P 500 (NYSE:SPY) component Dell (NASDAQ:DELL) will unveil its latest earnings on Thursday, November 15, 2012. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.
Dell Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 40 cents per share, a decline of 25.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 40 cents during the last month. Analysts are projecting profit to rise by 18.3% versus last year to $1.74.
Last quarter, the company came in at net income of 50 cents per share against a mean estimate of profit of 45 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 3 cents.
Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now
Stock Price Performance: Between August 16, 2012 and November 9, 2012, the stock price fell $2.82 (-23.1%), from $12.23 to $9.41. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 8.2% (+94 cents) over that span. It saw one of its worst periods between August 24, 2012 and September 5, 2012 when shares fell for eight straight days, dropping 6.6% (-74 cents) over that span.
A Look Back: In the second quarter, profit fell 17.8% to $732 million (42 cents a share) from $890 million (48 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 7.5% to $14.48 billion from $15.66 billion.
Wall St. Revenue Expectations: On average, analysts predict $13.91 billion in revenue this quarter, a decline of 9.4% from the year-ago quarter. Analysts are forecasting total revenue of $57.43 billion for the year, a decline of 7.5% from last year’s revenue of $62.07 billion.
An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 17.6% in the fourth quarter of the last fiscal year, by 32.8% in the first quarter and again in the second quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4% in the first quarter and dropped again in the second quarter.
Analyst Ratings: There are mostly holds on the stock with 14 of 26 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.32 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: