Dell Results Beat Estimates on Strong PC Demand; stocks jump

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A person looks at a Dell laptop computer for sale at a store in Manhattan, New York, U.S., November 24, 2021. REUTERS/Andrew Kelly/Files

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May 26 (Reuters) – Dell Technologies Inc (DELL.N) beat revenue forecasts for the ninth straight quarter on Thursday after companies invested heavily in its desktops and laptops to support hybrid working.

Shares of the PC maker jumped 7% after the bell as it also beat quarterly profit expectations with a 62% jump and said revenue growth was fueled by continued strength in commercial PCs.

Dell’s results come at a time when tech companies are battling a global chip shortage and supply chain disruptions worsened by war in Ukraine and further lockdowns in China.

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Revenue from Dell’s Client Solutions Group – home to its hardware units – rose 17% in the quarter, with commercial PC revenue jumping 22% to $12 billion.

Total revenue rose 16% to $26.12 billion in the first quarter, versus an average analyst estimate of $25.04 billion, according to Refinitiv data.

Net income from continuing operations reached $1.07 billion from $659 million a year earlier.

Excluding items, Texas-based Dell earned $1.84 per share, beating estimates of $1.39 per share.

Earlier today, chip company Broadcom Inc (AVGO.O) announced that it would buy VMware in a $61 billion cash and stock deal. The cloud computing company spun off from Dell in 2021. Read more

Michael Dell, founder and boss of the nearly four-decade-old company, is VMware’s biggest investor with a 40% stake.

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Reporting by Richard Rohan Francis and Eva Mathews in Bengaluru; Editing by Amy Caren Daniel and Devika Syamnath

Our standards: The Thomson Reuters Trust Principles.

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