The 10-second takeaway
For the quarter ended Feb. 3 (Q4), Dell met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank.
Gross margins improved, operating margins dropped, net margins dropped.
Dell booked revenue of $16.03 billion. The 30 analysts polled by S&P Capital IQ looked for net sales of $15.98 billion on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $15.69 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The 33 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share on the same basis. GAAP EPS of $0.43 for Q4 were 10% lower than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.1%, 10 basis points better than the prior-year quarter. Operating margin was 5.8%, 100 basis points worse than the prior-year quarter. Net margin was 4.8%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $15.10 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $62.81 billion. The average EPS estimate is $2.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,034 members out of 5,682 rating the stock outperform, and 1,650 members rating it underperform. Among 1,259 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 920 give Dell a green thumbs-up, and 339 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dell is outperform, with an average price target of $17.81.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended writing covered calls in Dell. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.