Dell Technologies Revises Q4 Earnings Guidance

Dell Technologies (NYSE:DELL) has updated its earnings forecast for the fourth quarter, providing fresh figures for revenue and earnings per share (EPS). On Tuesday morning, the company disclosed that it expects EPS for the quarter to fall within the range of $2.40 to $2.60. This estimate is below the consensus forecast of $2.65, indicating a potential shortfall in earnings expectations. In addition, Dell Technologies has projected its revenue for the same period to be between $24 billion and $25 billion, which also does not meet the consensus estimate of $25.59 billion.

Moreover, Dell has also adjusted its guidance for the whole fiscal year 2025, providing EPS expectations between 7.710 and 7.910.

Analyst Perspectives

Wall Street analysts have been closely observing Dell Technologies, with multiple investment firms providing updated insights and price targets. Recently, UBS Group reduced its target price for the stock from $164.00 to $158.00 while maintaining a "buy" rating. On the same date, Fox Advisors upgraded its position on Dell from "equal weight" to "overweight." Furthermore, Susquehanna initiated coverage on the stock, assigning it a "neutral" rating along with a price target of $120.00. Deutsche Bank also initiated coverage, setting a "buy" rating and a price objective of $144.00. Additionally, Morgan Stanley increased its target price from $136.00 to $154.00, marking the stock as "overweight." Within market analysis, three analysts have rated the stock as a hold, while fourteen others recommend a buy. Overall, the consensus comes to a "Moderate Buy" rating, with a price target of approximately $146.50.

Recent Stock Performance

In trading on Tuesday, Dell Technologies’ stock experienced a decline, falling by $2.45 to reach $141.71. The total volume of shares traded was 12,355,298, surpassing the average volume of 10,016,068 shares. Dell's stock has a market capitalization of $99.54 billion, a P/E ratio of 26.05, and a PEG ratio of 1.52. Over the past year, the company's shares have fluctuated between a low of $67.51 and a high of $179.70. As of the last earnings announcement on November 26, the company reported $2.15 EPS, exceeding the anticipated $1.83 by a notable margin. However, the revenue for that quarter stood at $24.37 billion, which fell short of the expected $24.67 billion. The revenue grew 9.5% compared to the same quarter the previous year.

Dividend Update

Dell Technologies recently declared a quarterly dividend, which shareholders received on November 1, with a rate of $0.445 per share. This annually translates to a dividend of $1.78, equating to a yield of 1.26%. The company's dividend payout ratio is currently noted at 32.72%.

Insider Activity

In other notable developments, Director Lynn Vojvodich sold 725 shares at an average price of $129.50, amounting to $93,887.50. Subsequently, they hold around 23,680 shares. Furthermore, CFO Yvonne McGill sold 8,000 shares at an average price of $143.24, totaling approximately $1,145,920. Insider transactions in the recent three months have seen 17,962,112 shares sold, valued at over $2.11 billion, indicating considerable activity among corporate insiders who currently hold about 46.70% of the company's stock.

Company Overview

Dell Technologies Inc. designs and provides various technology products and services both nationally and internationally. The firm operates primarily through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

Earnings, Stocks, Analysis