The semiconductor maker is scheduled to report quarterly results after today's close
Dell Technologies Inc (NYSE:DELL) is slated to take to the earnings confessional after the close today, where the chip giant will report third-quarter results. According to Seeking Alpha, the consensus earnings per share estimate of $2.06 is a 9.6% year-over-year increase, while the average revenue estimate of $27.72 billion represents a 10.9% increase over the last 12 months.
The company could see a big boost from Coreweave and Elon Musk's xAI, both of which said they use the Dell Technologies' hardware for artificial intelligence (AI) infrastructure. Plus, Morgan Stanley reiterated its "overweight" rating and $154 price target earlier this month.
Looking at the last two years, DELL has a tendency to move higher the day after earnings. In fact, the equity won five of its last eight post-earnings sessions, including a 31.6% jump in March and a more modest 4.3% pop in August. Historically, shares averaged an 11.5% move, regardless of direction, though the options pits are pricing in a slightly smaller move of 11.1% this time around.
Options traders are also placing bets ahead of the event. So far today, 32,000 calls and 28,000 puts have crossed the tape, which is 1.5 times the average intraday volume. The most activity is taking place at the weekly 11/29 130-strike put, followed closely by the 160-strike call in the same series.
Dell Technologies stock was last seen 0.6% lower at $143.26, about 20% below its May 29 all-time high of $179.21. Following that peak, the semiconductor giant's shares struggled on the charts, turning in negative performances in June and July. However, DELL is on track for its fourth-straight monthly gain, and stands 87.8% higher year to date.
