Computer hardware maker Dell Technologies (DELL) will release its second quarter Fiscal 2025 results on August 29. Analysts forecast that the company will report earnings per share of $1.71, down 1.7% from the same quarter last year. Meanwhile, analysts expect revenues of $24.15 billion, reflecting a 5% year-over-year increase, according to TipRanks’ data.
In terms of share price performance, DELL stock surged 48% year-to-date. Interestingly, the company has an encouraging earnings surprise history. The company exceeded earnings estimates in each of the previous nine quarters.
Insights from the TipRanks Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool, analysts bullish on Dell believe that the company is well-positioned to benefit from the booming AI server market, which is expected to expand at a staggering 45% CAGR. Furthermore, bulls anticipate that DELL’s Q2 revenue and EPS will beat consensus estimates.
Meanwhile, bears expect shares to face pressure due to concerns over declining gross margins, rising component costs, and a higher AI server mix. These factors could lead to an EPS forecast that misses Street estimates. Additionally, the weak performance of Dell’s Infrastructure Solutions Group (ISG) unit is expected to remain a concern.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 11.62% move in either direction.
What Is the Prediction for Dell Stock?
The stock has a Strong Buy consensus rating, backed by 10 Buy and two Hold ratings. Despite the year-to-date rally, the analysts’ average price target on Dell stock of $149.92 implies 34.02% upside potential from current levels.
