J.P. Morgan Comments On Dell F1Q12 Results

According to J.P. Morgan, Dell (NASDAQ: DELL) reports its F1Q12 (April) results on Tuesday, May 17.

J.P. Morgan said that it expects Dell to disappoint again on the revenue front, but the EPS profile could benefit from a sturdy gross margin. “Indeed, with the hoarding in the PC food chain and with attractive components pricing, we think that Dell could benefit from another quarter or two of elevated gross margin. We think that this prospect has been lifting the stock in recent days. While good for a near-term trade, the lack of a revenue-driven boost to gross margin does not help Dell's long-term model.”

Dell closed yesterday at $16.66.