Earnings Previews: Dell, Gap, HP, Marvell

Earnings announcements that we had previewed for Tuesday evening and Wednesday morning all topped bottom-line expectations, and just one (Heico) missed on the top line.

After markets close this afternoon, we shall see results from four companies we previewed on Tuesday: Pure Storage, Salesforce, Snowflake and Splunk. Thursday morning brings reports from four more firms we have previewed: Academy Sports, Dollar General, Dollar Tree and Xpeng.

After markets close Thursday, we expect to hear seven interesting reports. In an earlier report, we previewed three more companies set to report Thursday afternoon:, Peloton and Workday. Here we look at four additional reports due late Thursday.


Hardware and software maker Dell Technologies Inc. (NYSE: DELL) has posted a share-price gain of about 65% over the past 12 months. Like many other tech companies, Dell shares have bounced around since mid-April of this year, but they are still up nearly 40% for the year to date.

Rising demand for PCs has been driving sales and the expected reopening of schools and offices has curbed some of the enthusiasm for the stock. But the surge in new coronavirus infections may change the calculus somewhat. Analysts will be listening closely for any guidance on that score.

Analysts are moderately bullish on Dell stock, with 12 of 19 rating the shares a Buy or Strong Buy and six others rating the stock a Hold. At a recent price of around $101.90, the implied upside to the median price target of $119 is about 16.8%. At the high price target of $136, the implied upside is about 33.5%.

Revenue for the second quarter of fiscal 2022 is expected to total $25.55 billion, which would be up about 4.3% sequentially and about 12.2% year over year. Adjust earnings per share (EPS) are forecast to come in at $2.04, down 4.2% sequentially but up about 6.3% year over year. For the 2022 fiscal year, current estimates call for EPS of $8.61 (up 7.6%) on sales of $101.71 billion (up 7.8%).

The stock trades at 11.6 times expected 2022 EPS, 11.2 times estimated 2023 earnings and 10.1 times estimated 2024 earnings. The stock’s 52-week range is $58.88 to $104.62, and Dell does not pay a dividend.


Apparel retailer Gap Inc. (NYSE: GPS) has seen its share price soar by more than 80% over the past 12 months. Since the beginning of 2021, the stock has added about 40%, although it was up nearly 82% in mid-May. Year over year, revenue growth in the company’s first quarter was 89%. In the same quarter last year, revenue was down 43%. Revenue and same-store sales comparisons with fiscal 2019 are probably going to carry more weight than year-over-year numbers.

Analysts have entered wait-and-see mode on the stock, with 18 of 24 putting a Hold rating on the shares and the other six rating the stock a Buy or Strong Buy. At a price of around $27.80, the implied upside based on a median price target of $36.05 is nearly 30%. At the high target of $45, the implied gain is almost 62%.

Second-quarter revenue is forecast to come in at $4.12 billion, up about 3.2% sequentially and up 26% year over year. Adjusted EPS of $0.46 is sharply above last year’s one-cent loss for the quarter, but 3.5% lower than first-quarter EPS. For the full year, analysts’ current estimates call for EPS of $1.79, compared with fiscal 2020’s loss of $0.56 per share, on sales of $17.14 billion, up 24.2%.

The stock trades at 14.0 times expected 2022 EPS, 11.8 times estimated 2023 earnings and 10.2 times estimated 2024 earnings. The stock’s 52-week range is $15.76 to $37.63, and Gap pays an annual dividend of $0.48 (yield of 1.65%).

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