Dell Inc. (DELL) Earning report August 16 2011 Overview

Dell Inc. (DELL) Earning report August 16 2011 Overview : Dell trades an average of 26.85 million shares per day, and has a market cap of $27.76 billion. Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. The company designs, develops, manufactures, markets, sells, and supports mobility products, including laptops, netbooks, tablets, and smartphones; desktops PCs; and servers and networking products. The company was founded in 1984 and is headquartered in Round Rock, Texas.



Industry: Computer Hardware

Recent Price: $14.78

52 Week High: $17.60

52 Week Low: $11.34

Book Value: $4.41



On average, 32 analysts are expecting $0.48 per share, a drop of $-0.07 in earnings per share compared to last quarter's results of $0.55. Next quarter estimated mean earnings are $0.48 per share. Analyst estimates range between $0.41 and $0.57 per share. Dell has been able to beat the estimates in the last five quarters. With the recent market volatility, the future guidance will be looked at very closely. About a week ago the stock went below the 200 day moving average. At the time of this article, the stock has moved off the lows and is again testing the average.



Revenue year-over-year has increased to $61.49 billion for 2011 vs. $52.90 billion for 2010. The bottom line has rising earnings year-over-year of $2635 billion for 2011 vs. $1.43 billion for 2010. The company's earnings before income and taxes are rising with an EBIT year-over-year of $3.43 billion for 2011 vs. $2.17 billion for 2010. Revenue growth is at an annual rate of 16.24%.



Q1 Highlights:



* The company reported total revenue amounting to $15 billion, a year-over-year increase of 1 percent compared with $14.9 billion.

* By revenue group

* Large enterprise had revenue of $4.5 billion, up 5.4 percent year-over-year.

* Public revenue was $3.7 billion, down 2.3 percent year-over-year.

* Small and medium business revenue reported was $3.7 billion, a year-over-year increase of 6.9 percent.

* Consumer segment posted the highest revenue decline of 7.5 percent to $3 billion.

* Servers and networking revenue improved by 10.5 percent year-over-year to $ 2 billion.

*Services revenue increased by 4.9 per cent year-over-year to $2 billion.

* Software and peripherals sales were 2.6 billion for the quarter, up 2.8 percent.

* Mobility revenue came in at $4.7 billion, a year-over-year increase of 3.4 percent.

* Desktop PC sales for the quarter totaled $3.3 billion, down 8.1 percent year-over-year.

* Operating income was $1.4 billion, an increase of 67 percent over $824 million.

* Non-GAAP net income came in at $1.05 billion, up 79.8 percent year-over-year compared with $584 million.

* Diluted EPS was $0.55, up from $0.30 in the comparable year-ago quarter.



Analysts expect the company to report earnings ranging from $0.41 to $0.54 per share this quarter, with a consensus estimate of $0.48 per share and a coefficient variance of 7.29 percent. Dell is expected to post revenue in the range of $15.4 billion to $16.1 billion, with a consensus of $15.8 billion. In the corresponding year-ago quarter, the company reported earnings of $0.32 on revenue of $15.5 billion. A report by Gartner and IDC on Q2 PC shipments showed that the industry is "still in a period of adjustment". However, enterprise spending is expected to be higher, which should help offset weakness from the consumer segment. The company has greatly improved its cost efficiencies, which is helping to improve margins and should help this quarter's performance.



DELL is currently trading at a price of $14.36, and has been trading in the range of $ 11.34 to $17.60 in the past 52 weeks. The stock has an average target price of $19.00, and has an average recommendation of Overweight.