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Technology Stocks : Dell Technologies Inc.
DELL 127.22+3.8%3:59 PM EST

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To: JRI who wrote (54689)7/28/1998 12:41:00 PM
From: Gabriel008  Read Replies (1) of 176387
 
John, in both Q1 & Q2, f98 I had the ASP at $2700. This means a 9% YOY decline translates to $2457 ASP for Q1,f99 and 12% generates a $2376 ASP for Q2,f99. The actual ASP for Q1,f99 was $2466 so he wasn't far off. BTW, he's assumed a 3% sequential decline from Q1,f99 - the same perentage ASP decline I used.

When the analysts calculate their estimates for each quarter and the entire year it is based on a constant average weighted share basis for the entire year. That is why the quarterly eps estimates are additive. However, when I calculated eps estimates for f99 I added a real eps [Q1] plus estimates for the remaining 3 quarters. Each of these quarterly results includes different average weighted shares since DELL actually buys back shares every quarter. As a result the eps estimates for each quarter are not additive. The analysts assume no share buybacks in their estimates and are therefore additive.

Regards,

Gabriel
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