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Dell Technologies (DELL) to Post Q1 Earnings: What's in Store?

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Dell Technologies (DELL - Free Report) is set to report first-quarter fiscal 2023 results on May 26.

Dell expects first-quarter revenues in the range of $24.5-$25.7 billion, suggesting 11% growth on a year-over-year basis at the midpoint. Earnings are expected between $1.25 per share and $1.50 per share, suggesting 2% growth on a year-over-year basis at the midpoint.

The Zacks Consensus Estimate for revenues is pegged at $25.32 billion, suggesting 3.37% growth from the figure reported in the year-ago quarter.

The consensus mark for quarterly earnings is pegged at $1.39 per share, indicating a 34.74% decline from the year-ago quarter’s figure. The consensus estimate for earnings has been steady in the past 30 days.
 

Dell Technologies Inc. Price and EPS Surprise

Dell Technologies Inc. Price and EPS Surprise

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

 

Dell's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed the same in the remaining one. The company delivered a trailing four-quarter earnings surprise of 9.16%, on average.

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

Factors to Watch

Although the global chip shortage and supply-chain constraints are leading to unpredictability in the technology sector, Dell is expected to have witnessed strong consumer demand for notebooks, laptops and personal computers in the to-be-reported quarter.

Per Gartner, worldwide PC shipments in the first quarter of 2022 witnessed a year-over-year decrease of 6.8%, reaching 77.9 million units. Dell was ranked third among all PC vendors and apart from Apple (AAPL - Free Report) and ASUS, it was the only vendor to witness year-over-year shipment growth.

Dell shipped 13.804 million units, witnessing 6.1% year-over-year growth in the first quarter of 2022, per the Gartner report. Apple shipped 7.005 million units, witnessing 8.6% year-over-year growth.

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

Dell’s solutions are getting adopted by customers like Miami Dolphins, AT&T, Vodafone, Munich Re and India-based Greenpanel across domains, such as data storage, hyperconverged infrastructure, multi-cloud, as-a-service, edge and telecom. This is likely to have driven the top line in the fiscal first quarter.

However, high component costs are expected to have hurt profitability 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. However, that’s not the case here.

Dell has an Earnings ESP of 0.00% 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 have the right combination of elements to beat earnings in their upcoming releases:

Veeva Systems (VEEV - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva is scheduled to release first-quarter fiscal 2023 results on Jun 1. VEEV shares have fallen 36.2% year to date (YTD).

Samsara (IOT - Free Report) has an Earnings ESP of +21.05% and a Zacks Rank #2.

Samsara is scheduled to release first-quarter fiscal 2023 results on Jun 2. IOT shares have been down 63.2% YTD.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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