Dell Earnings Preview - Will AI Impact Sales?

Core Viewpoint - Dell Technologies is set to report earnings, with expectations of a gain of $1.69/share on $23.10 billion in revenue, while the Whisper number suggests a gain of $1.76/share [2] Financial Performance - The company's earnings have shown volatility in recent years, with earnings per share (EPS) recorded as follows: $7.35 in 2020, $4.88 in 2021, $6.22 in 2022, $7.61 in 2023, and $7.37 in 2024. Future projections indicate growth to $8.14 in 2025, $9.21 in 2026, and $10.37 in 2027, primarily driven by AI advancements [3] - The current price-to-earnings (P/E) ratio stands at 14, which is 0.6 times that of the S&P 500 [3] Technical Analysis - The stock has been in a downtrend since May 2024 but is attempting to find a bottom, having recently surpassed its declining 50 and 200-day moving average lines. The stock is currently 36% below its 52-week high, indicating significant recovery potential [4] Company Overview - Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports a wide range of integrated solutions, products, and services globally [5] - The company operates in two main segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment focuses on storage solutions and AI-optimized servers, while the CSG segment provides notebooks, desktops, and peripherals [6][8] Additional Services - Dell also offers customer financing arrangements and various payment solutions, including as-a-Service and subscription models, catering to a diverse clientele including enterprises, government agencies, educational institutions, and healthcare organizations [9]