Dell Technologies Poised for Strong Q4 Earnings Report
Texas-based Dell Technologies Inc. (DELL) is a prominent global provider of technology solutions, offering an extensive range of products and services, including personal computers, servers, storage devices, and cloud solutions. With a market cap of $79.9 billion, the company meets the needs of businesses, government agencies, and individual consumers, placing a strong emphasis on innovation, scalability, and customer satisfaction. Dell is set to share its Q4 earnings after the market closes on Wednesday, February 26.
Analysts Anticipate Solid Earnings Growth
Ahead of this announcement, analysts project that Dell Technologies will report a profit of $2.30 per share, reflecting a 16.8% increase from $1.97 per share during the same quarter last year. The firm has a history of exceeding Wall Street’s EPS estimates, doing so in the last four quarters.
Fiscal Year 2025 Projections Improve
For fiscal year 2025, analysts predict Dell Technologies will achieve an EPS of $6.92, which represents a 12.7% rise from the $6.14 reported in fiscal year 2024.
Stock Performance Surpasses Market Expectations
Over the past 52 weeks, DELL stock has climbed 23.3%, outperforming the S&P 500 Index’s ($SPX) gain of 22.9% and the Technology Select Sector SPDR Fund’s (XLK) return of 12.8% during the same period.
Strong Focus on AI Fuels Growth
Dell Technologies’ sound performance can be attributed to its commitment to artificial intelligence (AI) and AI-optimized servers. Strategic alliances with major tech companies, including NVIDIA Corporation (NVDA) and QUALCOMM Incorporated (QCOM), have strengthened Dell’s position within the AI infrastructure sector amid rising demand.
Analysis of Recent Earnings Report
The company’s Q3 earnings report, released on November 26, caused a sharp dip of over 12% in its stock on the following trading day. Although Dell posted a 10% year-over-year revenue growth to $24.4 billion, it fell short of Wall Street’s forecast of $24.6 billion. However, a silver lining emerged with a 14% increase in profit per share, reaching $2.15 and exceeding analysts’ expectations of $2.06. Notably, significant revenue growth was reported in the Infrastructure Solutions Group, driven by soaring demand for AI servers, which saw a record 34% increase, amounting to $3.6 billion in orders.
Analyst Sentiment Remains Positive
The consensus on Dell Technologies stock is strongly bullish, carrying a “Strong Buy” rating. From the 20 analysts monitoring the stock, 15 recommend a “Strong Buy,” two suggest a “Moderate Buy,” while three opt for a “Hold.”
Bright Future Ahead
DELL’s average price target stands at $149.42, indicating a potential increase of 43.9% from current price levels.
On the date of publication,
Kritika Sarmah
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
