Wall Street analysts looking for Dell’s plan to grow services business, boost profits

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Ahead of the Bell: Dell financial analyst meeting

ROUND ROCK, Texas — Dell Inc., the world’s third-largest PC maker, is holding its annual meeting with Wall Street analysts Thursday.

Like much of the technology industry, Dell is benefiting from businesses that have begun spending money to replace aging computers, servers and other products. During the worst of the recession, corporations held off on technology purchases, while consumers flocked to the least expensive laptops and smaller netbooks.

In a note to investors earlier this week, UBS analyst Maynard Um wrote that he expects Dell executives to sound upbeat about the return of corporate customers, which are more profitable for Dell than consumers. Um also expects Dell to talk about its technology services business, which brings in more profit for Dell than selling hardware, but which remains a small portion of the company’s revenue.

Dell may also discuss plans to further cut costs beyond the $4 billion in savings it had targeted through fiscal 2011, and to make its consumer PC business more profitable.

Um wrote that he hopes Dell will give investors benchmarks to help track the company’s performance, and that he hopes to hear the company’s take on what will drive the business after corporations finish their catch-up spending on new computers and other technology.

Analysts will also be listening for an update on Dell’s integration of Perot Systems, the technology services provider it bought last year for $3.9 billion, and for clues as to future acquisitions.