Dell Technologies Reports Q3 Earnings: Analysts Adjust Forecasts

Dell Technologies Inc. (NYSE: DELL) has recently reported its earnings for the third quarter, showing results that have led to some revisions in analysts' forecasts.

The company announced earnings of $2.15 per share for the quarter, surpassing the analyst consensus estimate of $2.05. However, its revenue fell short of expectations, with total sales recorded at $24.37 billion. This figure was slightly below the consensus estimate of $24.65 billion, although it reflected a growth from $22.25 billion in the same quarter of the previous year.

Yvonne McGill, the Chief Financial Officer of Dell Technologies, commented on the results, stating, "We continued to build on our AI leadership and momentum, delivering combined ISG and CSG revenue of $23.5 billion, up 13% year over year. Our continued focus on profitability resulted in EPS growth that outpaced revenue growth, and we again delivered strong cash performance."

Despite the positive earnings, Dell's share price dropped by 11.9%, reaching $124.82 on the Wednesday following the announcement.

In light of these results, several analysts have adjusted their price targets for Dell:

• Tim Long from Barclays maintained a rating of Equal-Weight and raised his price target from $106 to $115.
• Asiya Merchant of Citigroup reiterated a Buy rating but lowered the price target from $160 to $156.
• Vijay Rakesh at Mizuho confirmed an Outperform rating and cut the price target from $155 to $150.
• Ben Reitzes at Melius Research kept a Buy rating, increasing the target from $140 to $155.

Considering investing in DELL stock? Here’s a summary of what analysts recommend:

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In conclusion, Dell Technologies has demonstrated strong earnings, outpacing expectations in terms of EPS, while facing challenges in revenue that analysts are keenly monitoring. The adjustments by various analysts indicate a mixed outlook on the stock, reflecting the market's reaction to the latest results.

Dell, Earnings, Analysts