Dell Technologies Poised for Growth as Earnings Approach
Market Expectations Set High for Q3 Earnings
Dell Technologies Inc. (DELL) is currently valued at a market capitalization of $85.4 billion. The company offers a wide range of information technology solutions through three main segments: Client Solutions, Enterprise Solutions Group (ESG), and Dell Software Group (DSG). Located in Texas, Dell is preparing to announce its Q3 earnings after the market closes on Thursday, December 5.
Analyst Predictions Point to Profit Increase
Analysts are forecasting that Dell Technologies will report a profit of $1.83 per share for the upcoming quarter. This reflects a 13% increase compared to the $1.62 per share recorded in the same quarter last year. Notably, Dell has consistently beaten Wall Street’s expectations for earnings per share (EPS) across the last four quarters. In its most recent report, the company achieved an EPS of $1.69, surpassing consensus estimates by 13.4%.
Looking Ahead: Fiscal 2025 Forecasts
As for fiscal year 2025, analysts anticipate an EPS of $6.91, which marks a 12.5% increase from the $6.14 projected for fiscal year 2024.
Notable Stock Performance
Over the past year, DELL stock has experienced a significant rise, climbing 82.1%. This performance outstrips the gains of the S&P 500 Index ($SPX), which increased by 41.7%, and the Technology Select Sector SPDR Fund’s (XLK) returns of 42.6% during the same period.
AI Demand Fuels Growth
Dell’s strong performance can be attributed to the heightened demand for AI servers, which has been driven by a wave of digital transformation and growing excitement around generative AI (GenAI) applications.
Concerns Amid Insider Trading
However, on October 1, DELL’s stock faced a setback, closing down more than 4%. This decline followed indications of insider selling, particularly after an SEC filing revealed that CEO and founder Michael Dell sold $1.2 billion worth of stocks on October 24.
Analysts Remain Optimistic
Overall, analysts maintain a very positive outlook on Dell Technologies stock, which holds a “Strong Buy” rating. Among the 19 analysts monitoring the stock, 14 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and three analysts have opted for a “Hold.”
Future Price Target Suggests Further Growth
Currently, Dell’s average price target stands at $147.79, indicating a potential increase of 21.5% from current price levels.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
