Dell Stock: Wall Street Sees More Upside After Earnings
Dell stock is higher Friday after the PC maker beat Q2 expectations, but analysts think there's more room to run. Here's what you need to know.
Dell Technologies (DELL) stock is set to end the week on a positive note, trading higher Friday after the computer maker beat top- and bottom-line estimates for its second quarter and provided a strong outlook for the third quarter and full fiscal year.
In the three months ended August 2, Dell's revenue increased 9.1% year-over-year to $25 billion, driven by an 80% spike in servers and networking revenue to a record $7.7 billion. Its earnings per share (EPS) increased 8.6% from the year-ago period to $1.89.
"We executed well in Q2, and I'm really proud of our team and our performance," said Dell Chief Operating Officer Jeff Clarke 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 leverage the benefits of artificial intelligence."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came in ahead of analysts' expectations. Wall Street was anticipating revenue of $24.5 billion and earnings of $1.71 per share, according to Yahoo Finance.
On the conference call, Dell said it anticipates full-year revenue in the range of $95.5 billion to $98.5 billion and earnings of $7.80 per share, plus or minus 25 cents. Analysts are forecasting revenue of $96.3 billion and earnings of $7.70 per share.
For the third quarter, Dell expects revenue to arrive between $24 billion to $25 billion and earnings of $2 per share, give or take 10 cents. Analysts are guiding for revenue of $24.6 billion and earnings of $2.20 per share.
Is Dell stock a buy, sell or hold?
The tech stock has had a great run so far in 2024, rising nearly 50% year to date and outperforming the broader market. Even after the significant rally, analysts think Dell stock has more room to run.
According to S&P Global Market Intelligence, the consensus analyst target price for the blue chip stock is $152.17, representing implied upside of more than 30% to 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 stock but lowered its price target to $158 from $164 following the earnings release.
AI server demand strength and strong infrastructure solutions group (ISG) margins should help drive multiple expansion, says UBS analyst David Vogt.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What’s Happening With Taxes on Overtime Pay?
Income Tax Donald Trump’s latest idea to eliminate overtime tax has ignited chatter.
By Kelley R. Taylor Published
-
Starlink is taking over the space market
The Kiplinger Letter Satellite broadband provider Starlink is taking over the space market. Amazon’s mega-constellation will soon join the fray, adding to the unprecedented disruption.
By John Miley Published
-
Four Common Misconceptions About Life Insurance
Just because you have no dependents and no debt doesn't mean life insurance wouldn't come in exceedingly handy for someone in your life or even a charity.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published
-
Should You Keep Your 401(k) When You Retire?
Here are three primary reasons you might want to consider moving your retirement money from your 401(k) to an IRA once you retire.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
Want to Move to Italy? What to Consider Financially
Once you've decided that you and Italy are compatible, you'll want to work out your tax planning, investments, retirement accounts and benefits.
By Alex Ingrim, Chartered MCSI Published
-
Stock Market Today: Stocks Rise in Choppy Day for Markets
Moderna was the worst S&P 500 stock today after the vaccine maker slashed its R&D budget.
By Karee Venema Published
-
Will the Fed Cut Rates in September? Here's What Experts Predict
The race is already on to predict the trajectory of future reductions to borrowing costs.
By Dan Burrows Published
-
U.S. Dividend Payouts Accelerated in Q2, Led By Alphabet and Meta
Dividend payouts grew at an impressive rate in the second quarter, with Magnificent 7 stocks Alphabet and Meta helping fuel the increases.
By Joey Solitro Published
-
Microsoft Eliminates Another 650 Positions at Xbox Gaming
Microsoft stock is down slightly after announcing another round of layoffs in its Xbox gaming division. Here's what you need to know.
By Joey Solitro Published
-
Moderna Stock Plunges as Vaccine Maker Slashes R&D Budget: What to Know
Moderna stock is plunging Thursday after the COVID-19 vaccine maker announced plans to drastically cut its R&D spending to focus on new product approvals.
By Joey Solitro Published