Here’s What to Expect Ahead of Dell’s Big Earnings Report

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S&P 500 (NYSE:SPY) component Dell, Inc. (NASDAQ:DELL) will unveil its latest earnings on after the market closes on Tuesday, May 22, 2012. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.

Dell, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 47 cents per share, a decline of 14.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 46 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 47 cents during the last month. Analysts are projecting profit to rise by 0.5% versus last year to $2.12.

Past Earnings Performance: Last quarter, the company saw profit of 51 cents per share versus a mean estimate of net income of 51 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 0.7% in revenue from the year-earlier quarter to $14.92 billion.

Analyst Ratings: With 11 analysts rate analysts rating the stock a buy, one rates rating it as a sell, and 11 rate rating it a hold, analysts are bullish on the stock.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 17.6% to $764 million (42 cents a share) from $927 million (48 cents a share) the year earlier, meeting analyst expectations. Revenue rose 2.2% to $16.03 billion from $15.69 billion.

Key Stats:

Dell (NASDAQ:DELL) is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose more than twofold in the first quarter of the last fiscal year, 63.3% in the second quarter of the last fiscal year and 8.6% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

Stock Price Performance: Between January 3, 2012 and May 21, 2012, the stock price rose $.34 (2.3%). The stock price saw one of its best stretches over the last year between January 26, 2012 and February 3, 2012, when shares rose for seven straight days, increasing 5.8% (+97 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 9% (-$1.41) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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