The 10-second takeaway
For the quarter ended Feb. 1 (Q4), Dell beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins grew, net margins shrank.
Dell reported revenue of $14.31 billion. The 23 analysts polled by S&P Capital IQ predicted sales of $14.13 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $16.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. Non-GAAP EPS of $0.40 for Q4 were 22% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.30 for Q4 were 29% lower than the prior-year quarter's $0.42 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 21.7%, 50 basis points better than the prior-year quarter. Operating margin was 4.9%, 10 basis points better than the prior-year quarter. Net margin was 3.7%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $13.59 billion. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $56.15 billion. The average EPS estimate is $1.67.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,042 members out of 5,743 rating the stock outperform, and 1,701 members rating it underperform. Among 1,204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 848 give Dell a green thumbs-up, and 356 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dell is hold, with an average price target of $12.49.
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