Dell stock: Wall Street sees more upside after earnings

VaselineAugust 30, 2024

0 2 minutes read

Dell Technologies Shares ( DELL ) will end the week on a positive note, trading Friday after the computer maker beat both top and bottom estimates for the second quarter and provided a strong outlook for the third quarter and the full fiscal year.

In the three months ended Aug. 2, Dell’s revenue rose 9.1 percent year over year to $25 billion, driven by an 80 percent increase in server and networking revenue to a record of 7.7 billion dollars. Its earnings per share (EPS) rose 8.6% from the year-ago period to $1.89.

“We did well in Q2 and I’m really proud of our team and our performance,” Jeff Clarke, Dell’s chief operating officer, said on the company’s conference call. “Our AI momentum accelerated in Q2, and our results and outlook demonstrate that we are uniquely positioned to help customers reap the benefits of AI.”

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The results came in ahead of analysts’ expectations. Wall Street had expected revenue of $24.5 billion and earnings of $1.71 per share, according to Yahoo Finance.

On the conference call, Dell said it expects annual revenue of $95.5 billion to $98.5 billion and earnings of $7.80 per share, plus or minus 25 cents. Analysts expect revenue of $96.3 billion and earnings of $7.70 per share.

For the third quarter, Dell expects revenue of $24 billion to $25 billion and earnings of $2 per share, 10 cents. Analysts are projecting revenue of $24.6 billion and earnings of $2.20 per share.

Is Dell stock a buy, sell or hold?

The technology stock has had an excellent performance so far in 2024, rising nearly 50% year-to-date and outperforming the market overall. Even after the significant rally, analysts believe Dell stock has more room to run.

Conformable S&P Global Market Intelligenceanalyst consensus price target for blue chip stock is $152.17, representing an implied upside of over 30% from current levels. Meanwhile, the consensus recommendation is a Buy.

Financial services firm UBS Global Research maintained its Outperform rating (equivalent to a Buy) on DELL shares, but cut its price target to $158 from $164 following the earnings release.

Strength in AI server demand and strong infrastructure solutions group (ISG) margins should help spur multiple expansion, says UBS analyst David Vogt.

VaselineAugust 30, 2024

0 2 minutes read

Vaseline

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