Dell (DELL) Reports Q1: Everything You Need To Know Ahead Of Earnings

Computer hardware and IT solutions company Dell (NYSE:DELL) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

Dell missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $23.93 billion, up 7.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ operating income estimates.

Is Dell a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dell’s revenue to grow 4% year on year to $23.13 billion, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.69 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dell has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Dell’s peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Super Micro reported revenues up 19.5%, falling short of estimates by 2.7%. IonQ traded up 9.3% following the results while Super Micro was down 1.2%.

Read our full analysis of IonQ’s results here and Super Micro’s results here.

There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 8.5% on average over the last month. Dell is up 21.7% during the same time and is heading into earnings with an average analyst price target of $128.11 (compared to the current share price of $114.10).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.