Dell Technologies Inc. (NYSE:DELL) shares rocketed in premarket trading on Friday after the company posted a fourth-quarter earnings report that beat Wall Street expectations on both revenue and profit.
The Numbers Behind the Pop
Dell reported fourth-quarter earnings of $3.89 per share, topping the consensus estimate of $3.53 by more than 10%. Revenue came in at $33.38 billion, clearing the Street’s $31.73 billion estimate and surging from $23.93 billion in the year-ago period.
The company also announced a 20% cash dividend increase and a $10 billion boost to its share repurchase authorization.
Dell guided fiscal 2027 adjusted EPS to $12.90 versus the $11.59 analyst estimate, with revenue projected between $138 billion and $142 billion, well above the $125.54 billion consensus.
Technical Analysis
Dell Technologies is currently positioned well above its key moving averages, which signals strength in its market stance. The stock is trading 12.9% above its 20-day simple moving average (SMA) and 1.8% above its 100-day SMA.
Over the past 12 months, the stock has gained 12.63%, and it now hovers near the upper range of its 52-week spectrum, with a high of $168.08 and a low of $66.25.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the May 28, earnings report. Here’s what to expect:
- EPS Estimate: $2.96 (Up from $1.55 YoY)
- Revenue Estimate: $31.75 billion (Up from $23.38 billion YoY)
- Valuation: P/E of 16.2x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $157.20. Recent analyst moves include:
- Morgan Stanley: Underweight (Lowers Target to $101.00) (Feb. 18)
- Citigroup: Buy (Lowers Target to $160.00) (Feb. 17)
- Citigroup: Buy (Lowers Target to $165.00) (Jan. 20)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Dell Technologies, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: Moderate (Score: 39.54) — Reflects a fair valuation relative to market peers.
- Momentum Rank: Weak (Score: 32.46) — Indicates some challenges in maintaining upward momentum.
DELL Price Action: Dell Technologies shares were up 11.07% at $134.90 during premarket trading on Friday, according to Benzinga Pro data.
Photo by Poetra.RH via Shutterstock
