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Dell Technologies Q1 2024 earnings preview

DELL is set to report its first-quarter fiscal 2024 results on Jun 1.

Dell expects fiscal first-quarter revenues in the range of $20-$21 billion, suggesting a 21.5% decline on a year-over-year basis at the midpoint. Earnings are expected between positive 80 cents and negative 15 cents per share, down 82% on a year-over-year basis at the midpoint.

The Zacks Consensus Estimate for revenues is pegged at $20.2 billion, suggesting a 22.65% decline from the figure reported in the year-ago quarter.

The consensus mark for quarterly earnings is pegged at 86 cents per share, indicating a 53.26% decline from the year-ago quarter’s figure. The consensus estimate for earnings has remained unchanged in the past 30 days.

Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote

Dell’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. The company delivered a trailing four-quarter earnings surprise of 22.48% on average.

Let’s see how things have shaped up for DELL before this announcement.

Factors to Watch
Dell is expected to have benefited from the ongoing digital transformation and continued investment in innovation in the to-be-reported quarter.

However, unfavorable foreign exchange is expected to have been a headwind. Dell expects nearly 300 basis points impact on revenues.

Challenging macro environment and cautious storage spending are expected to have hurt Infrastructure Solutions Group’s (ISG) growth in the to-be-reported quarter. Lengthening sales cycles is expected to have hurt the top line. Dell expects ISG revenues to fall sequentially in the mid-20s.

Client Solutions Group (CSG) revenues are expected to have suffered from declining PC demand, both in the customer and enterprise business segments. Dell expects CSG revenues to fall sequentially in the mid-teens.

Per the Gartner report, worldwide PC shipments in the first quarter of 2023 witnessed a year-over-year decline of 30%, reaching 55.2 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.

This Zacks Rank #3 (Hold) company shipped 9.541 million units, witnessing a 30.9% year-over-year decline in the first quarter of 2023, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lenovo, HP and Apple shipped 12.828 million, 12.019 million and 4.819 million units, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Seeking Alpha

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