Dell Earnings: Here’s Why Shares are Down Now

Dell Inc. (NASDAQ:DELL) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.37%.

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Dell Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 51.16% to $0.21 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Decreased 2.41% to $14.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dell Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.35. It beat the average revenue estimate of $13.52 billion.

Quoting Management: “We made progress in building our enterprise solutions capabilities in the first quarter and are confident in our strategy to be the leading provider of end-to-end scalable solutions,” said Brian Gladden, Dell chief financial officer. “In addition, we have taken actions to improve our competitive position in key areas of the business, especially in end-user computing, and it has affected profitability. We’ll also continue to make important investments to support our strategy and drive long-term profitability.”

Key Stats (on next page)…

Revenue decreased 1.68% from $14.31 billion in the previous quarter. EPS decreased 47.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.41 to a profit $0.38. For the current year, the average estimate has moved down from a profit of $1.66 to a profit of $1.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)