Dell (DELL) is expected to report poor first quarter earnings on Tuesday, May 22, 2012 with analysts expecting a 14.5% drop in earnings from a year ago. The consensus estimate is 47 cents per share, down from earnings of 55 cents per share a year ago.
What to Expect:
The consensus estimate hasn't changed over the past month, but it's up from three months ago when it was 46 cents. Analysts are expecting earnings of $2.12 per share for the fiscal year.
Analysts project revenue to fall 0.6% year-over-year to $14.92 billion for the quarter, after being $15.02 billion a year ago. For the year, revenue is projected to come in at $62.49 billion.
Trends to Watch For:
The fall in profit in the fourth quarter of the last fiscal year broke a three-quarter streak of year-over-year profit growth. Net income fell 17.6% in the fourth quarter of the last fiscal year from the year earlier, while the figure rose 8.6% in the third quarter of the last fiscal year, 63.3% in the second quarter of the last fiscal year and more than twofold in the first quarter of the last fiscal year.
Over the last four quarters, revenue has increased 0.9% on average year-over-year. The biggest increase came in the most recent quarter, when revenue rose 2.2% from the year-earlier quarter.
Analyst Ratings:
Analysts have grown increasingly optimistic about the stock in the last three months.
Competitors:
Dell produces a range of personal electronic items, such as desktop PCs, software and peripherals, servers, and storage. One of Dell's main competitors in the computers and peripherals industry is Apple (AAPL). Other competitors in the information technology sector include: Hewlett-Packard (HPQ), Silicon Graphics International (SGI), and Super Micro Computer (SMCI).
Recent Price Movement:
The stock price has fallen 17.3% since February 17, 2012, from $18.16 to $15.02.
Earnings estimates provided by Zacks.
Narrative Science, through its proprietary artificial intelligence platform, transforms data into stories and insights.
