What Does Wall Street See for Dell's Q3?
Dell (NAS: DELL) is expected to report Q3 earnings on Nov. 15. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Dell's revenues will compress -9.5% and EPS will wane -25.9%.
The average estimate for revenue is $13.90 billion. On the bottom line, the average EPS estimate is $0.40.
Revenue details
Last quarter, Dell reported revenue of $14.48 billion. GAAP reported sales were 7.5% lower than the prior-year quarter's $15.66 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.50. GAAP EPS of $0.42 for Q2 were 13% 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.
Recent performance
For the preceding quarter, gross margin was 21.8%, 90 basis points worse than the prior-year quarter. Operating margin was 6.4%, 110 basis points worse than the prior-year quarter. Net margin was 5.1%, 60 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $57.41 billion. The average EPS estimate is $1.74.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,074 members out of 5,779 rating the stock outperform, and 1,705 members rating it underperform. Among 1,223 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 830 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 $15.56.
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The article What Does Wall Street See for Dell's Q3? originally appeared on Fool.com.
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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.
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