Dell Stock (NYSE:DELL)
After the market closed on Thursday, Dell said it expects to earn between 65 cents and 95 cents per share in its first fiscal quarter. In contrast, sales are expected to fall between 17% and 21% year over year. Although Dell’s corporate division, which includes servers, storage, and networking equipment, has been doing well recently, the PC market has been blamed for most of the decrease.
According to J.P. Morgan analyst Samik Chatterjee in a research note, Dell’s “softer demand patterns are projected to be weighted towards the first half of the year,” with the “trough quarter” occurring during the first three months of the fiscal year. In light of this news, Chatterjee, who has an overweight recommendation on Dell stock, decreased his full-year sales projections on Dell to $88.5B from $86.9B. The price objective for Dell shares that Chatterjee had set before was $50, which he lowered to $47.
Shares of Dell rose by 1% on Friday as analysts remained generally optimistic about the company’s future and its financial performance in the fourth quarter.
The second half of the year “may be better than predicted for Dell as the business continues to take action on cost cuts,” according to Bank of America Securities’ Wamsi Mohan. Mohan said, “we consider the guidance as cautious,” even though demand for Dell’s products is expected to remain poor in the near future.
Although its total sales declined by 11% from the same time a year ago, Dell on Thursday revealed better-than-expected fourth-quarter earnings, along with its forecast. At the beginning of the third quarter of Dell’s fiscal year, Yvonne McGill will take over as controller from outgoing CFO Tom Sweet.
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