S&P 500 component Dell Inc. reported its results for the fourth quarter. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.
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Dell Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Dell Inc. fell to $764 million (43 cents per share) vs. $927 million (48 cents per share) a year earlier. This is a decline of 17.6% from the year-earlier quarter.
Revenue: Rose 2.2% to $16.03 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Dell Inc. reported adjusted net income of 51 cents per share. By that measure, the company fell in line with the mean estimate of 51 cents per share. Analysts were expecting revenue of $15.93 billion.
Quoting Management: “Our customers think of Dell in much broader terms now, trusting us with their comprehensive IT needs, from the datacenter to the device,” said Michael Dell, chairman and CEO. “We are more committed than ever to both developing and investing in innovative solutions that deliver greater value and better outcomes for our customers.”
Key Stats:
Last quarter’s profit decreases breaks a four-quarter run of profit increases. In the third quarter, net income rose 8.6% from the year earlier, while the figure increased 63.3% in the second quarter, more than twofold in the first quarter and more than twofold in the fourth quarter of the last fiscal year.
Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 0.1 percentage point from the year-earlier quarter to 21.1%. During this time, margins have grown an average of 3.9 percentage points per quarter on a year-over-year basis.
The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the third quarter, it topped the mark by 7 cents, and in the second quarter, it was ahead by 5 cents.
Over the last five quarters, revenue has increased 1.8% on average year-over-year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 5.3% from the year-earlier quarter.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 46 cents. In the last thirty days, the average estimate for the fiscal year has moved up from $2.12 per share to $2.13.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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