The Anticipation of Dell Technologies Earnings
Dell Technologies has recently been added to Evercore ISI’s tactical outperform list, signaling a positive outlook ahead of its October-quarter earnings report. As the company prepares to disclose its performance metrics, analysts are keenly watching the stock to see if it can surpass the consensus revenue and earnings per share (EPS) estimates of $24.69 billion and $2.07 respectively.
Strength in Infrastructure Solutions
Much of the optimism surrounding Dell (NYSE: DELL) stems from its Infrastructure Solutions Group (ISG). Evercore ISI highlights a strong performance in areas such as storage, general-purpose computing, and AI server sales. Expectations are high as analysts forecast that AI server shipments may reach over $3.1 billion in the upcoming quarter, exceeding the company’s guidance that suggested a flat to down quarter-over-quarter report.
Future Expectations
In addition to the strong ISG performance, analysts are predicting that Dell’s AI server backlog will exit the quarter between $3 billion and $4 billion. This indicates robust demand within the market, which is essential for Dell’s continued growth. While some concerns exist regarding Dell’s Client Solutions Group (CSG), particularly with PCs, the overall outlook remains strong, and Evercore ISI maintains an outperform rating with a $150 price target for the stock.
In conclusion, as analysts gauge the performance of Dell Technologies in the stock market, their focus will remain on ISG margins. If these margins continue to show strength alongside improving demand, there is a good chance that investors will overlook potential shortfalls in other sectors.
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