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Dell Technologies (DELL) to Post Q4 Earnings: What's in Store?

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Dell Technologies (DELL - Free Report) is set to report fourth-quarter fiscal 2022 results on Feb 24.

Dell expects fourth-quarter revenues in the range of $27-$28 billion, suggesting 12-16% growth on a year-over-year basis.

The Zacks Consensus Estimate for revenues is pegged at $27.47 billion, suggesting 5.06% growth from the figure reported in the year-ago quarter.

The consensus mark for quarterly earnings is pegged at $1.95 per share, indicating a 27.8% decline from the year-ago quarter’s figure. The consensus estimate for earnings has increased by a penny in the past 30 days.

Dell's earnings beat the Zacks Consensus Estimate in all of the last four quarters. The company has delivered a trailing four-quarter earnings surprise of 17.93%, on average.
 

Dell Technologies Inc. Price and EPS Surprise

Dell Technologies Inc. Price and EPS Surprise

Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote

 

Let's see how things have shaped up for Dell before this announcement.

Factors to Watch

Although the pandemic and the global chip shortage are leading to unpredictability in the technology sector, Dell Technologies is expected to have witnessed strong consumer demand for notebooks, laptops and personal computers.

Per Gartner, worldwide PC shipments in fourth-quarter 2021 witnessed a year-over-year decrease of 5%, reaching 88.4 million units. Dell was ranked third among all PC vendors, and apart from Apple (AAPL - Free Report) , it was the only vendor to witness year-over-year shipment growth.

Dell shipped 17.196 million units witnessing 7.9% year-over-year growth in fourth-quarter 2021, per Gartner report. Apple shipped 6.846 million units, witnessing 6.2% year-over-year growth.

Moreover, Dell expects the operating income rate to increase sequentially since the fourth quarter is a seasonally strong storage quarter.

Dell is also expected to have benefited from strong growth in servers and networking revenues in the to-be-reported quarter.

What Our Model Unveils

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Dell has an Earnings ESP of 4.88% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Zscaler (ZS - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ZS is scheduled to release second-quarter 2022 results on Feb 24. Zscaler’s shares have gained 19.6% in the past year compared with the Zacks Internet – Services industry’s growth of 3.9%. The Zacks Computer and Technology Sector witnessed a fall of 0.8% over the same time frame.

Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2022 results on Feb 28.

Ambarella’s shares have returned 11% in the past year compared with the Zacks Electronics-Semiconductors industry’s growth of 9.1%.


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