Dell Technologies (NYSE:DELL) is set to reveal its Q2 earnings after the stock market closes on Thursday, June 1st. The company’s financial report is highly anticipated by Wall Street and industry analysts alike, as they await news of the hardware giant’s progress over the last three months.
Experts are predicting that Dell will announce earnings of $0.86 per share for the quarter, though this remains to be seen. The company has had a tumultuous few months, with insider selling causing some unease among investors. COO Anthony Charles Whitten sold 15,983 shares of Dell’s stock back in March at an average price of $36.49 apiece, while General Counsel Richard J. Rothberg recently sold 200,958 shares for approximately $9 million. In total, insiders have offloaded 522,371 shares worth more than $22 million in the past 90 days alone.
Despite these concerns, Dell continues to pay out a quarterly dividend to shareholders. The latest payment was made on May 5th to all stockholders who were registered on April 25th; these individuals received a dividend of $0.37 per share – up from the previous quarter’s payout of $0.33 per share.
As things stand, insiders hold around half of all outstanding shares in Dell Technologies; this amounts to a significant stake in the company, with ownership currently sitting at 48.60%. Many investors will be scrutinizing Thursday’s earnings report closely for any signs of progress or potential red flags; there is no doubt that it will significantly impact the firm’s performance in coming weeks and months.
Dell Technologies has long been celebrated as one of the technology sector’s most impressive performers and impressive innovators; sitting atop a market cap approaching $100 billion makes it a formidable force indeed. However, there can be no denying that recent events have caused some consternation amongst those observing the business from afar. As we wait with bated breath for the Q2 earnings report, it is unclear which side of the fence investors will ultimately land on once all is said and done.
[bs_slider_forecast=”DELL”]
Dell Technologies Exceeds Expectations in Q1, Demonstrates Strong Financial Standing
Dell Technologies (NYSE:DELL) demonstrated exceptional performance in the first quarter of the current fiscal year, reporting earnings per share (EPS) of $1.55. The tech company’s success exceeded market expectations by $0.17, with a revenue estimate of $22.82 billion surpassed at $25.04 billion – signifying a staggering growth trajectory.
An important factor to consider as analysts surmise Dell Technologies’ phenomenal performance in Q1 is the company’s exceptional management, which led to a net margin of 2.39%. A negative return on equity of 173.72% did not obscure the company’s strong financial standing that managed to top market projections by an impressive margin.
With analysts anticipating Dell Technologies to post an EPS worth $4 and $5 for the current fiscal year and next fiscal year, respectively; it remains clear that this tech juggernaut is making waves in the industry.
Despite obvious positive indicators from a behemoth like Dell Technologies, it opens Thursday trading at $45.91- significantly below its close range on Wednesday trading at the near-end of May 2023.
This can be attributed to several factors; Deutsche Bank Aktiengesellschaft reduced its price objective on shares from $48.00 to $45.00 but maintains a “buy” rating; meanwhile, Citigroup cut price objectives from $53.00 TO an even lower range at $50.OO
While some concerns remain when dealing with evaluating such mammoth firms like Dell Tech leading so far ahead in their sector, they often attract envy or intimidation amongst competitors who may resort to strategic competition via reports that lead, influence and affect Dell’s stock prices — as Morgan Stanley did upgrading their target recommendation for DELL’s stock from equal weight to overweight boosting their price range from already high targets increasing it higher at around $55.
Sanford C Bernstein also lowered estimates by reducing their price objective from $60.00 to $51.00.
With up to 11 analysts rating DELL’s stock as a “buy,” it seems the market has a unified vision of the company’s performance potential and as of May 25, 2023, a consensus rating of “Moderate Buy” is projected with minds set at a consensus price target of $48.56 according to Bloomberg data.
Dell Technologies remains an exemplar in the tech industry boasting impressive earnings in Q1 that exceeded even remarkable predictions. As experts weigh bullish sentiments against more subdued expectations from competitors, the next few months will prove illuminating for Dell Technologies shareholders and indeed, the overall IT industry as a whole.
