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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (125691)	5/17/1999 11:27:00 PM
From: Venkie	Read Replies (4) \| Respond to of 176387

its what we live 4 that is such crap.......i live for the returns i get from my cd'c and gold. i am going short dell as soon as the market opens..this stock will be in the teens by lunch.i heard a rumor from a lady name LT that all you dell longs are washed up..the party is over dudes Preview Use Fixed Font....Terms of UseYou are responding to this message from LONGonDELL on May 17 1999 11:00PM EST DELL earnings... It's what we live for! Best, LoD

To: SecularBull who wrote (125691)	5/18/1999 1:33:00 AM
From: Zeem	Read Replies (2) \| Respond to of 176387

Dell results seen secure but analysts eye 2nd half May 17, 1999 8:40 PM EDT By Eric Auchard NEW YORK, May 17 (Reuters) - Dell Computer Corp. (Nasdaq: DELL), the fast-growing direct seller of personal computers, is expected to report first-quarter results Tuesday that meet or slightly beat Wall Street's tightly focused profit outlook. For Dell, the outcome is expected to be the equivalent of shooting fish in a barrel, with brokers targeting profit estimates in a tight range of 15 cents to 17 cents per share. Most expect 16 cents, according to a First Call Corp. survey. The consensus view for the first quarter ended in April compares with 11 cents per share reported in the year-ago first quarter, adjusted for separate 2-for-1 stock splits in September and March. Analysts are confident the Round Rock, Texas company can deliver revenues around $5.5 billion -- up 40 percent year-to-year and two to three times the rate of major rivals -- but down from Dell's historic annual rates above 50 percent. Dell can ill afford any sign of further deceleration after the stunning fiscal fourth-quarter slowdown that caused Dell stock -- for years among the best-performing U.S. equities -- to stumble sharply in February and trade sideways since then. "We are not so much concerned about the April quarter," U.S. Bancorp Piper Jaffray analyst Ashok Kumar said of the his brokerage's expectations for Dell results. "We are concerned about the outlook for the second half of the year," he said. "We expect Dell's corporate business to pick (up) after last quarter's weakness, as Dell said they exited 4Q (fourth quarter) with the largest backlog in memory," Merrill Lynch analyst Steve Milunovich said in a note to clients Monday. Sales at Dell, the No. 2 PC supplier worldwide, are expected to benefit from the turmoil at the No. 1 PC maker, Compaq Computer Corp. (NYSE: CPQ), which posted first-quarter results that were only half of what Wall Street expected. "Our surveys show Dell generally gaining share in corporate accounts," Milunovich said of the company's core market, which accounts for about two-thirds of revenues. The remainder comes from sales to small business, home offices and consumers. Investors will demand evidence of solid execution across its range of businesses, and indications that the company's outlook remains robust heading into the perilous second half of this year, thus justifying its still lofty stock valuation. Echoing the views of several analysts, Kumar said he expected revenues of about $5.5 billion and earnings in line with the Wall Street consensus of 16 cents per share for Dell's fiscal first-quarter ended in April. He allowed that Dell has the potential to bring in another $150 million to $200 million in first-quarter revenues that would help boost bottom-line profits to 17 cents or 18 cents per share -- or a penny or two above expectations. "The April quarter could be very strong -- on the back of Compaq's failed execution during the quarter," Kumar said. "We just don't think Dell has sustainable momentum," he said. Kumar pointed to signs the North American PC market -- which accounts for two-thirds of Dell's revenues -- has slowed in the face of a corporate "lock-down" on new PC spending as companies focus on fixing "Year 2000" date glitches in existing equipment. "Right now the direction seems to be very negative," Kumar said of his darkening view of Dell's outlook for the second-half, which comes in spite of his continued recommendation to clients to buy Dell stock. While Dell is seen as a sure bet to gain share against rivals Compaq, International Business Machines Corp.(NYSE: IBM) and Hewlett-Packard Co. (NYSE: HWP), analysts will look for signs that industry price and ongoing component cost declines have sapped Dell profit margins. Milunovich expects gross margins to decline to 22 percent from 22.4 percent in the fourth quarter ended in January due to aggressive pricing in corporate accounts, sales of new, lower-margin sub-$1,000 PCs and a shortage of notebook parts. On Monday, Dell stock closed at $43.25, up $2.06 on the day in heavy Nasdaq trading ahead of the financial report, due out after the close of trading Tuesday. The stock has traded in a range since falling from February's perch of $55, an all-time high, adjusted for stock splits. REUTERS