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Technology Stocks : Dell Technologies Inc.
DELL 127.61+0.8%Dec 23 3:59 PM EST
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To: larry who wrote (80206)11/15/1998 12:05:00 AM
From: BGR  Read Replies (1) of 176387
 
Larry,

In other words, analysts are expecting DELL to have about 3% growth from 4Q 99 to 1Q 00, but consistent 10% growth in the following 3 quarters. Sounds rather inconsistent to me.

Now, if 1 Q 00 is upwardly adjusted to 33 cents (10%) and the following quarters are adjusted accordingly, we have 33, 36, 40 and 44 cents respectively. Assuming an average 1 cent per share upward adjustment as the fiscal year progresses (as DELL has historically underestimated growth) and that DELL beats estimates by an average of 1 cent (again, as DELL as historically done), we arrive at 1.61 earnings for fiscal year 00.

This puts us at about 55% EPS undiluted, about the same as this quarter's. Now add share buybacks to taste to adjust the diluted EPS up. Please note that the company has outstanding authorized share buybacks of about 10% of outstanding shares as well as a formidable cash flow which is showing no signs of slowing up.

-Apratim.
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