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Dell Technologies (DELL) to Post Q3 Earnings: What's in Store?

Dell Technologies DELL is set to report its third-quarter fiscal 2024 results on Nov 30.

Dell expects fiscal third-quarter revenues in the range of $22.5-$23.5 billion, unchanged sequentially. Earnings are expected to be $1.45 per share (+/- 10 cents).

The Zacks Consensus Estimate for revenues is pegged at $22.93 billion, suggesting a 7.23% decline from the figure reported in the year-ago quarter.

The consensus mark for quarterly earnings is pegged at $1.47 per share, indicating a 36.09% decline from the year-ago quarter’s figure. The consensus estimate for earnings has been steady in the past 30 days.

Dell's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 39.52% on average.

Dell Technologies Inc. Price and EPS Surprise

Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. Price and EPS Surprise

Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote

Let's see how things have shaped up for DELL before this announcement.

Factors to Watch

Dell expects both Client Solutions Group (CSG) and Infrastructure Solutions Group revenues to be roughly flat sequentially in the to-be-reported quarter. Continued sluggish IT spending by corporate and global enterprise customers is expected to have hurt top-line growth.

Moreover, unfavorable foreign exchange is expected to have been a headwind. Dell expects roughly 40 basis points impact on revenues.

CSG revenues are expected to have suffered from lackluster PC demand. Per Gartner, worldwide PC shipments in the third quarter of 2023 witnessed a year-over-year decrease of 9%, reaching 64.279 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.

This Zacks Rank #2 (Buy) company shipped 10.32 million units, witnessing a 14.2% year-over-year decline in the third quarter of 2023, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lenovo, HP and Apple shipped 16.146 million, 13.531 million and 6.266 million units, respectively.

Dell’s expanding Generative AI solutions portfolio is expected to have accelerated top-line growth.

Dell’s latest solution, the Dell Validated Design for Generative AI with NVIDIA for Model Customization, offers pre-trained models that extract intelligence from data, sparing enterprises from building models from scratch.

Dell Validated Designs for Generative AI now supports both model tuning and inferencing. The solution is supported by the Dell PowerEdge XE9680 AI server or the Dell PowerEdge XE8640, with a choice of NVIDIA Tensor Core GPUs and NVIDIA AI Enterprise software, which offers frameworks, pre-trained models and development tools, such as the NVIDIA NeMo framework and Dell software.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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