Sunday, May 16, 2021

Report: Dell to Release Disappointing Earnings on Thursday

Dell has announced plans to release its most recent quarterly report early, prompting widespread speculation that the results will be bad. The PC maker’s board is currently mulling over a privatization offer from founder Michael Dell and a competing buyout offer led by investor Carl Icahn and Southeastern Asset Management.

Matt Egan with FOX Business reported, “Dell (DELL) revealed plans on Tuesday to move up its earnings release by five days and reports suggest the struggling PC maker’s profits will significantly miss expectations. Dell didn’t explain why it now plans to release quarterly results on Thursday, but the numbers are likely to bolster management’s argument for completing the company’s transformation away from the harsh scrutiny of Wall Street.”

According to The Wall Street Journal’s Shira Ovide, “Dell now expects to report revenue of roughly $14 billion, and earnings of 20 cents a share, excluding some expenses, according to the person briefed on the financial results. The average of analyst estimates had called for Dell to post $13.5 billion in revenue, and earnings of 35 cents a share, excluding some items, according to FactSet Research Systems Inc. This person also said Dell expects to report operating income of about $600 million, below average analyst forecasts.”

The Associated Press noted, “There’s high intrigue surrounding Dell’s earnings report because the company is trying to sell itself to CEO Michael Dell and other investors for $24.4 billion. Two of Dell’s biggest shareholders, billionaire Carl Icahn and Southeastern Asset Management, have made an alternate proposal in an attempt to block that deal.”

Reuters observed, “Analysts have said Dell’s rapidly shrinking business and murky prospects in a declining PC market may make the buyout a more attractive option for investors tired of waiting for a turnaround but many shareholders are unhappy with Michael Dell’s proposal to offer $13.65 a share to acquire the company.”

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