Dell (DELL): Analysts React to Surprise Q4 Earnings; Are These Margins Real?
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Price: $442.08 +1.68%
Rating Summary:
24 Buy, 21 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 21 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Dell Inc. (NASDAQ: DELL) shares are surging on Wednesday in midday market movement, up 11.18 percent to $15.47, following the company posting blowout fiscal fourth-quarter earnings on improved margins.
The personal computer maker on Tuesday reported fiscal 2011 fourth-quarter earnings of 53 cents per share, 16 cents better than the analyst estimate of 37 cents per share.
Revenue for the company rose 5 percent to $15.7 billion , which compares the market consensus of $15.72 billion.
Gross margin for the company was 21 percent for the fourth quarter, boosting margins for the full year to 18.5 percent, which Dell attributes to record profitability in the enterprise solutions and services sector.
Analyst Comments:
Brean Murray Carret & Co. maintains a Buy rating on Dell with a price target of $17 on the stock. The firm said, " The Dell story continues to play out commensurate with our Buy thesis, although we continue to expect Dell to remain a more volatile prove to me story as we mover through the year."
Janney Capital Markets maintains a Neutral Rating on Dell with a fair value estimate of $16 on the stock. The firm said, "Gross margins were the big surprise for the quarter and management remains confident that gross margin improvements are sustainable. Component cost tailwinds, supply chain improvements, and pricing disciple all helped."
Goldman Sachs Maintains a Sell on Dell while raising its price target on the stock from $10 to $11. Goldman analyst says, "We do not believe this quarter’s
margin upside is sustainable, and we factor this view into our estimates
(which are below guidance). We reiterate our Sell rating."
The personal computer maker on Tuesday reported fiscal 2011 fourth-quarter earnings of 53 cents per share, 16 cents better than the analyst estimate of 37 cents per share.
Revenue for the company rose 5 percent to $15.7 billion , which compares the market consensus of $15.72 billion.
Gross margin for the company was 21 percent for the fourth quarter, boosting margins for the full year to 18.5 percent, which Dell attributes to record profitability in the enterprise solutions and services sector.
Analyst Comments:
Brean Murray Carret & Co. maintains a Buy rating on Dell with a price target of $17 on the stock. The firm said, " The Dell story continues to play out commensurate with our Buy thesis, although we continue to expect Dell to remain a more volatile prove to me story as we mover through the year."
Janney Capital Markets maintains a Neutral Rating on Dell with a fair value estimate of $16 on the stock. The firm said, "Gross margins were the big surprise for the quarter and management remains confident that gross margin improvements are sustainable. Component cost tailwinds, supply chain improvements, and pricing disciple all helped."
Goldman Sachs Maintains a Sell on Dell while raising its price target on the stock from $10 to $11. Goldman analyst says, "We do not believe this quarter’s
margin upside is sustainable, and we factor this view into our estimates
(which are below guidance). We reiterate our Sell rating."
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