Dell
The 10-second takeaway
For the quarter ended Nov. 2 (Q3), Dell met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Revenue details
Dell tallied revenue of $13.72 billion. The 29 analysts polled by S&P Capital IQ predicted revenue of $13.89 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $15.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.39. The 32 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS of $0.27 for Q3 were 45% lower than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 20.9%, 170 basis points worse than the prior-year quarter. Operating margin was 4.3%, 340 basis points worse than the prior-year quarter. Net margin was 3.5%, 230 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $14.45 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $57.40 billion. The average EPS estimate is $1.73.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,075 members out of 5,780 rating the stock outperform, and 1,705 members rating it underperform. Among 1,219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 826 give Dell a green thumbs-up, and 393 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 $13.58.
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