Dell Technologies (DELL) Q3 Earnings Beat Estimates

Dell Technologies (DELL) recently released its earnings report for the quarter ending in October 2024. The company reported earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $2.06 per share. This marks a significant increase from the earnings of $1.88 per share reported in the same quarter last year. These figures have been adjusted for any non-recurring items.

This quarterly report reflects an earnings surprise of 4.37%. In the previous quarter, expectations were set at an earnings of $1.74 per share; Dell managed to exceed that with actual earnings of $1.89 per share, resulting in a surprise of 8.62%.

Over the past four quarters, Dell Technologies has consistently surpassed consensus earnings per share (EPS) estimates.

In terms of revenue, Dell Technologies posted $24.37 billion for the quarter, which was slightly lower than the Zacks Consensus Estimate by 0.79%. Compared to the $22.25 billion in revenue from the year ago, this reflects an improvement. The company has outperformed consensus revenue estimates three times in the last four quarters.

The future movement of Dell Technologies' stock price will likely be influenced by insights shared by management during the earnings call, particularly regarding future earnings expectations.

Notably, Dell Technologies' shares have gained approximately 88.4% since the start of this year, contrasting sharply with the S&P 500's gain of 25.5%.

Looking Ahead for Dell Technologies

While Dell Technologies has shown a strong performance so far in 2024, investors are curious about what the future holds for the stock.

Determining the outlook is complex; however, a reliable indicator is the company's earnings forecast. This encompasses current consensus earnings expectations for the upcoming quarters, along with any recent changes in these expectations.

Research indicates a close relationship between short-term stock movements and trends in earnings estimate revisions. Investors can closely monitor these revisions or utilize effective rating tools like the Zacks Rank, which has proven to be useful in analyzing earnings estimate changes.

Before the recent earnings announcement, the estimate revisions trend for Dell Technologies indicated a mixed outlook. The magnitude and direction of these revisions could shift after the newly released earnings report, placing the stock at a Zacks Rank #3 (Hold). This suggests that shares are expected to perform in line with the broader market in the near term. A complete list of today's Zacks #1 Rank (Strong Buy) stocks can be found on their site.

It will be interesting to monitor how the estimates for future quarters and the current fiscal year evolve in the upcoming days. The current consensus EPS estimate stands at $2.63, along with projected revenues of $25.53 billion for the next quarter, and $7.86 on revenues of $97.36 billion for the entire fiscal year.

Investors should consider that the broader industry outlook significantly impacts stock performance as well. Currently, the Zacks Industry Rank for Computer - Micro Computers places it in the top 33% of over 250 Zacks industries. Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom half by over 2 to 1.

Another company within the broader Zacks Computer and Technology sector, SAIC, has not yet reported its results for the quarter ending in October 2024. Its results are expected to be released on December 5.

This IT services company is anticipated to report quarterly earnings of $2.17 per share, reflecting a year-over-year decrease of 4.4%. Notably, the consensus EPS estimate has remained stable for the past 30 days.

For its upcoming report, SAIC's revenue is predicted to reach $1.93 billion, marking a 1.9% increase from the prior year.

Earnings, Stocks, Forecast