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The company expects fiscal fourth-quarter revenues in the range of $21.5-$22.5 billion, with a midpoint of $22 billion. Earnings are expected to be $1.70 per share (+/- 10 cents).
The Zacks Consensus Estimate for revenues is pegged at $22.13 billion, suggesting an 11.63% decline from the figure reported in the year-ago quarter. Continued sluggish IT spending by corporate and global enterprise customers is expected to have hurt the company’s top-line growth.
The consensus mark for quarterly earnings is pegged at $1.73 per share, indicating a 3.89% decline from the year-ago quarter’s figure. The consensus estimate for earnings has been steady in the past 30 days.
Dell Technologies' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an earnings surprise of 35.55% on average.
Let's see how things have shaped up for DELL before this announcement.
Dell Technologies expects Infrastructure Solutions Group revenues to increase in the mid-single digits, driven by sequential growth in traditional servers and seasonal growth in storage. The company expects the Other business segment to decline in the low 20s sequentially.
It expects Client Solutions Group (CSG) revenues to decline in the low-single digits sequentially. CSG revenues are expected to have suffered from improving yet slow PC demand. DELL is witnessing pockets of stability in PC demand but is expected to see a broader recovery in the PC market.
Per Gartner report, global PC shipments totaled 63.3 million units in the fourth quarter of 2023, which increased for the first time after eight consecutive quarters of decline. For 2023, global PC shipments totaled 241.8 million units, down 14.8% year over year.
Lenovo, HP and Apple shipped 16.213 million, 13.954 million and 6.349 million units, respectively.
DELL’s expanding Generative AI solutions portfolio is expected to have accelerated its top-line growth.
The company is collaborating with Meta to make it easy for DELL customers to deploy the latter's Llama 2 models on premises, with Dell AI-optimized portfolio. Dell Technologies also announced a collaboration with Hugging Face to help users create, fine-tune and implement their own open-source GenAI models on Dell infrastructure.
The company announced upgraded PowerScale systems that comprise improved storage solutions for higher AI and Generative AI outcomes. The systems are well-equipped to help users access data quickly.
Dell PowerScale has an advanced smart scale-out capability to boost single-computer node performance. These utilize GPUs in a much better way, resulting in quicker storage throughput for AI training, checkpointing and inferencing. Enterprises can create, train, refine and infer AI models more quickly with PowerScale OneFS software upgrades.
Dell Technologies introduced the ObjectScale XF960, an all-flash scale-out appliance for GenAI and real-time analytics based on the company’s software-defined object storage solution, which can run on Linux and Red Hat OpenShift on PowerEdge servers.
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Dell Technologies (DELL) to Post Q4 Earnings: What's in Store?
Dell Technologies (DELL - Free Report) is set to report its fourth-quarter fiscal 2024 results on Feb 29.
The company expects fiscal fourth-quarter revenues in the range of $21.5-$22.5 billion, with a midpoint of $22 billion. Earnings are expected to be $1.70 per share (+/- 10 cents).
The Zacks Consensus Estimate for revenues is pegged at $22.13 billion, suggesting an 11.63% decline from the figure reported in the year-ago quarter. Continued sluggish IT spending by corporate and global enterprise customers is expected to have hurt the company’s top-line growth.
The consensus mark for quarterly earnings is pegged at $1.73 per share, indicating a 3.89% decline from the year-ago quarter’s figure. The consensus estimate for earnings has been steady in the past 30 days.
Dell Technologies' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an earnings surprise of 35.55% on average.
Let's see how things have shaped up for DELL before this announcement.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Factors to Watch
Dell Technologies expects Infrastructure Solutions Group revenues to increase in the mid-single digits, driven by sequential growth in traditional servers and seasonal growth in storage. The company expects the Other business segment to decline in the low 20s sequentially.
It expects Client Solutions Group (CSG) revenues to decline in the low-single digits sequentially. CSG revenues are expected to have suffered from improving yet slow PC demand. DELL is witnessing pockets of stability in PC demand but is expected to see a broader recovery in the PC market.
Per Gartner report, global PC shipments totaled 63.3 million units in the fourth quarter of 2023, which increased for the first time after eight consecutive quarters of decline. For 2023, global PC shipments totaled 241.8 million units, down 14.8% year over year.
Dell Technologies was ranked third among all PC vendors, trailing Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) , but beating Apple (AAPL - Free Report) .
This Zacks Rank #2 (Buy) company shipped 9.983 million units, witnessing a 17.2% year-over-year decline in the fourth quarter of 2023, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lenovo, HP and Apple shipped 16.213 million, 13.954 million and 6.349 million units, respectively.
DELL’s expanding Generative AI solutions portfolio is expected to have accelerated its top-line growth.
The company is collaborating with Meta to make it easy for DELL customers to deploy the latter's Llama 2 models on premises, with Dell AI-optimized portfolio. Dell Technologies also announced a collaboration with Hugging Face to help users create, fine-tune and implement their own open-source GenAI models on Dell infrastructure.
The company announced upgraded PowerScale systems that comprise improved storage solutions for higher AI and Generative AI outcomes. The systems are well-equipped to help users access data quickly.
Dell PowerScale has an advanced smart scale-out capability to boost single-computer node performance. These utilize GPUs in a much better way, resulting in quicker storage throughput for AI training, checkpointing and inferencing. Enterprises can create, train, refine and infer AI models more quickly with PowerScale OneFS software upgrades.
Dell Technologies introduced the ObjectScale XF960, an all-flash scale-out appliance for GenAI and real-time analytics based on the company’s software-defined object storage solution, which can run on Linux and Red Hat OpenShift on PowerEdge servers.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.