Dell Stock Rises As Computer Maker Crushes Q1 Estimates
Computer hardware giant Dell Technologies (DELL) on Thursday smashed Wall Street's estimates for its fiscal first quarter. Dell stock rose on the news.
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The Round Rock, Texas-based company earned an adjusted $1.31 a share on sales of $20.92 billion in the quarter ended May 5. Meanwhile, analysts polled by FactSet had expected Dell earnings of 86 cents a share on sales of $20.27 billion. However, on a year-over-year basis, Dell earnings dropped 29% while sales declined 20%.
"We executed well against a challenging economic backdrop," Chuck Whitten, Dell's co-chief operating officer, said in a news release. "We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors."
Dell's Infrastructure Solutions Group reported $7.6 billion in sales, down 18%. The unit sells servers, storage and networking gear. Also, the company's Client Solutions Group posted sales of $12 billion, down 23%. The division sells desktop and notebook PCs.
Dell Stock Rises After Early Report
Better-than-expected commercial PC sales and improved profit margins fueled Dell's first-quarter beat, Evercore ISI analyst Amit Daryanani said in a note to clients. He rates Dell stock as outperform with a price target of 55.
Dell surprised Wall Street by releasing its earnings report an hour before the market closed. On the stock market today, Dell stock rose 1.5% to 45.47.
Dell stock is on the IBD Tech Leaders list. Further, it has an IBD Composite Rating of 86 out of 99, according to IBD Stock Checkup.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Source: Investor's Business Daily
