Dell Earnings Preview: Get Ahead of the Analysts

Dell (NASDAQ:DELL) will report earnings after markets close on Thursday, May 16th. Dell Inc. offers a wide range of computers and related products. The Company sells personal computers, servers and networking products, storage systems, mobility products, software and peripherals, and services. Dell serves consumers and businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.

Here is your Cheat Sheet to Dell Earnings:

Earnings Expectations: Analysts expect earnings of $0.35 per share on revenues of $13.52 billion. Currently, the company’s P/E ratio stands at 9.98.

Analyst Trends:

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 is a profit of $1.53, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Dell has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 61,100 52,900 61,490 62,070 56,940
Diluted EPS ($) 1.25 0.73 1.35 1.88 1.35

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 16,030 14,420 14,480 13,720 14,310
Diluted EPS ($) 0.4268 0.36 0.42 0.27 0.3030

Past Performance:
Dell has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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