Dell Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Dell, Inc. (NASDAQ:DELL) will unveil its latest earnings on Tuesday, February 21, 2012. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.

Dell, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 51 cents per share, a decline of 3.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 38.3% versus last year to $2.13.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 54 cents per share against a mean estimate of net income of 47 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 1.5% in revenue from the year-earlier quarter to $15.93 billion.

Analyst Ratings: Of the 27 analysts surveyed, 15 (55.6%) rate Dell a buy. This falls under the mean analyst rating of 10 competitors, which average 66.3% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the third quarter, profit rose 8.6% to $893 million (49 cents a share) from $822 million (42 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 0.2% to $15.37 billion from $15.39 billion.

Key Stats:

The company’s net income rise has increased in each of the last three quarters. Net income rose 63.3% in the second quarter and more than twofold in the first quarter.

A year-over-year revenue decrease in the third quarter interrupted a streak of three consecutive quarters of revenue increases. Revenue rose 0.8%in the second quarter, 1% in the first quarter and 5.3% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between November 17, 2011 and February 15, 2012, the stock price rose $3.07 (20.6%), from $14.92 to $17.99. The stock price saw one of its best stretches over the last year between May 2, 2011 and May 11, 2011, when shares rose for eight straight days, increasing 8.4% (+$1.29) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 9% (-$1.41) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com