Dell’s Stars Lined Up Into Earnings (DELL, HPQ)

Dell Inc. (NASDAQ: DELL) reports earnings after the close today and we’ll get to see if the solid numbers from rival Hewlett-Packard (NYSE: HPQ) are being seen at Dell during their turnaround as well.  First Call has estimates at $0.36 EPS on $15.95 Billion in revenues.  As far as what to expect ahead, the coming quarter is expected to be $$0.41 EPS and revenues are expected to be $16.7 Billion.  For Fiscal January 2009, estimates are $1.59 EPS on $65.88 Billion in revenues.  What is interesting is that since its last report, shares are up roughly 20%, and shares are up close to 35% from the April lows.

Here are today’s other outside metrics to consider:

• Dell has likely continued to be a large buyer of its own stock
• Analysts’ average price target is north of $27.00
• Options traders appear to bde braced for a move of up to $1.15 to $1.30 in eather direction
• Its stock is hovering around highs not seen since late 2007, and shares are up about 35% from the lows around April
• Shares are well above the 50-day moving average of $23.94 and even much higher above the 200-day moving average of $22.12
• The new short interest has come down to roughly 60 million shares forthe mid-August data, down from 65 million shares at the end of July

It seems that things have lined up to where Wall Street is expectinggood numbers out of Dell.  There have been no major downward estimaterevisions from analysts since the last earnings and its rival ismanaging to buck economic headwinds. Its short interest is down and its stock is performing again. We have even heard that some keyanalysts are looking for $0.37 or $0.38 EPS, but that is justconjecture at this point.

Jon C. Ogg
August 28, 2008