Dell beats estimates for quarterly results on strong enterprise demand
Dell Technologies has beaten Wall Street estimates for quarterly profit and revenue, as enterprises invested heavily in the company’s desktops and laptops to support hybrid work.
Dell’s shares rose about 7% in extended trading as the PC maker forecast current-quarter revenue and profit above analysts’ expectations.
The company has seen strong demand for its products and services over the past few quarters as businesses invest in remote-working equipment and consumers upgrade their devices.
Revenue at Dell’s client solutions group (CSG) – home to its hardware units – rose 17% in the quarter ended April 29.
“We attribute this to Dell’s outsized exposure to commercial PCs, which have higher selling prices, while it has minimal exposure to Chromebooks, where most of the pressure has been felt,” said Angelo Zino, senior equity analyst at CFRA research.
Dell’s commercial PC revenue jumped 22% to $12 billion in the quarter.
The company, however, added that some impact from the global chip shortage and supply chain disruptions, exacerbated by the China lockdowns, was seen in the quarter.
“We expect backlog to remain elevated through at least Q2 due to current demand and industry-wide supply chain challenges,” said Jeff Clarke, co-chief operating officer at Dell, in a post-earnings call.
“We expect component costs to turn inflationary and logistics costs remain at elevated levels in Q2.”
The company expects revenue to be in the range of $26.1 billion to $27.1 billion in the current quarter and forecast adjusted profit per share of between $1.55 and $1.70.
Analysts estimate second-quarter profit of $1.47 per share and revenue of $25.6 billion, according to Refinitiv IBES data.
For the first quarter, the company reported adjusted profit of $1.84 per share and revenue of $26.12 billion, compared with estimates for a profit of $1.39 per share and revenue of $25.04 billion
Article Source -Dell beats estimates for quarterly results on strong enterprise demand – RTE