Dell Technologies ( DELL Quick Quote DELL - Free Report) is set to release fourth-quarter fiscal 2021 results on Feb 25. The company expects fourth-quarter revenues to increase in the 3-4% range sequentially. The Zacks Consensus Estimate for revenues is pegged at $23.99 billion, suggesting a 0.2% decline from the year-ago reported number. Further, the consensus mark for quarterly earnings has been steady over the past 30 days at $2.17 per share, suggesting growth of 8.5% from the year-ago period’s reported figure. Dell’s earnings beat the Zacks Consensus Estimate in three of the past four quarters, in-line with the same in one, the average earnings surprise being 27.3%.
Let’s see how things have shaped up prior to this announcement.
Factors to Watch
Dell is expected to have benefited from its dominant position in the enterprise IT-solutions market despite sluggish enterprise spending due to coronavirus-induced macroeconomic woes.
Markedly, the work-and-learn-from-home necessity has stoked demand for cloud services. Furthermore, the coronavirus-led surge in usage of online and e-commerce services globally has compelled data-center operators to enhance their capacities to accommodate the demand spike for cloud services. This is expected to have benefited Dell in the to-be-reported quarter. Moreover, the fourth-quarter top line is expected to reflect Dell’s share gain in the PC market amid solid demand for commercial PCs driven by coronavirus-led remote-working and online-learning wave. Dell was ranked third by both Gartner and IDC among all PC vendors in their latest fourth-quarter report, trailing Lenovo and HP ( HPQ Quick Quote HPQ - Free Report) . (Read More: Pandemic Giving PC Demand a Boost: 4 Stocks to Watch) However, the overall server market weakness is expected to have hurt Dell’s top line in the to-be-reported quarter. Moreover, this Zacks Rank #4 (Sell) company’s top-line growth is expected to have suffered from sluggish on-premise hardware spending as both enterprises and small-medium businesses’ customers delayed or scrapped projects. Additionally, weak demand for hyperscale servers also affected growth. Moreover, Dell faces stiff competition in the server market from Hewlett Packard Enterprise ( HPE Quick Quote HPE - Free Report) and International Business Machines ( IBM Quick Quote IBM - Free Report) , which might have a bearing on the impending quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Breakout Biotech Stocks with Triple-Digit Profit Potential
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