After the Bell: Dell Earnings on Tap
As PC sales decline, Dell's margins could face scrutiny.
As PC sales decline, Dell's margins could face scrutiny.
PC maker Dell is scheduled to report quarterly earnings after the market close Tuesday. Analysts, on average, forecast the firm to clock earnings per share of $0.43, compared with $0.17 in the prior-year quarter.
Investors will likely watch the results on two fronts: how PC sales performed in the quarter in the face of competition from tablets, and whether margins were affected because of falling PC prices.
After a strong fourth quarter, Dell had said it would have a weaker first quarter with revenue expected to see a "slight sequential decline."
Analysts also will likely note the performance of the enterprise servers and storage businesses, which could lead the growth charge at the company.
Dell shares are fairly valued, according to Morningstar analyst Michael Holt, who thinks the firm's future hinges squarely on how quickly and efficiently Dell makes the transition from "a maker of commodity boxes into a trusted enterprise solutions provider on par with Hewlett-Packard (HPQ) and International Business Machines (IBM)."
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