Benzinga | May 26, 2021 10:20AM EDT

Earnings Preview for Dell Technologies

On Thursday, May 27, Dell Technologies (NYSE:DELL) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Dell Technologies earnings of $1.61 per share. Revenue will likely be around $23.40 billion, according to the consensus estimate. In the same quarter last year, Dell Technologies reported earnings per share of $1.34 on revenue of $21.95 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 20.15%. Sales would be have grown 6.63% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 2.14 1.40 1.39 1.01EPS Actual 2.70 2.03 1.92 1.34Revenue Estimate 24.49 B 21.85 B 22.52 B 20.83 BRevenue Actual 26.15 B 23.52 B 22.77 B 21.95 B

Stock Performance

Shares of Dell Technologies were trading at $99.51 as of May 25. Over the last 52-week period, shares are up 119.55%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dell Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.