After the close, Dell (DELL) is scheduled to report 3Q20 results with a conference call to follow at 5:30 p.m. E.T.

For the quarter, analysts are expecting DELL to report EPS of $1.42 and revenue of $21.89 bln

HP Inc. (HPQ) is also set to report Q4 (Oct) results today after the close with a call to follow at 4:30pm ET.

Current S&P Capital IQ consensus for HPQ is for non-GAAP EPS to fall 13% yr/yr to $0.52 while revenue is expected to fall 4% yr/yr to $14.72 bln.

Analysts are right in-line with HPQ's prior guidance of Q4 EPS of $0.50-0.54 on Aug 27.

Last quarter, DELL reported that revenue increased by 18% in the consumer market, which significantly lagged HPQ's 42% surge in consumer market sales. That said, HPQ's manufacturing disruptions pushed some sales from Q2 into Q3, which inflated the growth rate last quarter.

Dell still owns an 81% equity position in VMWare (VMW), but on July 15 DELL confirmed that it's exploring a potential spin-off of the asset.

As for HP, they have been a beneficiary from strong unit sales of PCs for the home to help set up remote workers and students. PC use is up more than 20% since COVID emerged.

• On the Print side, the shift to remote work and learning is driving an uptick in home printing and there has been an increase of ink usage.

• HPQ has also seen pockets of growth in Labels and Packaging.

It's notable that we’re at the one year mark since CEO Enrique Lores took the helm at HP.

When he was named CEO, Mr. Lores focused on getting HPQ back on a growth trajectory, on making the company leaner (HPQ announced a huge round of job cuts), and he wanted to transition the company into a more digitally-enabled organization. He has made good progress and it will be interesting to hear his plans for FY21.

TECHS:

DELL is coming off back-to-back blowout quarters, which significantly raises the bar heading into tonight's report. Expectations are clearly elevated, as evidenced by the stock's ~17% gain this month.

HPQ on the other hand has a long history of EPS beats, with just one miss in the past five years. Typically, HPQ reports slight upside, but it has posted $0.06 upside in each of the past two quarters. That may not sound like a lot, but for HPQ it is.

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