Dell Technologies Inc. ($DELL) Earnings (Q2 FY23)

 Dell Technologies Inc. ($DELL) Earnings and Opinion:


Dell Technologies is a company in the Technology sector and operates in the Computer Hardware industry. The company designs, develops, manufactures, markets, sells, and supports information technology solutions, products, and services worldwide. Dell Technologies was founded in 1984 and is currently Round Rock, Texas. The company made its debut on the stock market in August of 2015.

Dell Technologies Earnings Results:

  • Revenues of $26.43B missing expectations of $26.45B
  • Gross Profit of $5.65B missing expectations of $5.79B
  • Operating Income of $1.95B beating expectations of $1.93B
  • Adjusted EPS of $1.68 beating expectations of $1.64
  • Inventories of $5.88B compared to estimates of $4.23B
Opinion:
Dell Technologies is currently trading a little bit lower after reporting earnings after the market closed today. The company had a mixed earnings report. They missed on revenues and Gross Profit. On the profitability side, the beat on EPS and Operating Income. Inventories were also up. Guidance is TBD, it will be announced on the conference call. With what we have to work with, it looks like a steady quarter. The revenue barely missed on most categories, and the gross margin was a slight miss. It's not anything to stress about for investors. As far as valuation goes, the P/E ratio is at 6.44, which is way below industry average. The P/S ratio is at 0.34, which is also way below the industry average. The ROE is eye opening at 184.5%. The current ratio is at 0.78, which is a little concerning. However, they get enough cash from operations to hopefully overcome the deficit. Debt outweighs Cash by a pretty wide margin though. In my opinion, Dell seems like a solid established company. If they are able to keep up with innovation, this company will not be going anywhere. I thought Dell was way bigger than it actually is. This is definitely a foundational stock to put in your portfolio. I am long Dell Technologies.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, CSI Market, Motley Fool

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