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Dell results surpass estimates on strong PC demand; shares jump

Stock Markets May 26, 2022 05:31PM ET
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© Reuters. A person looks at a Dell laptop for sale in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/Files

(Reuters) - Dell Technologies (NYSE:DELL) Inc beat revenue expectations for the ninth straight quarter on Thursday after enterprises invested heavily in its desktops and notebooks to support hybrid work.

The PC maker's shares jumped 7% after the bell as it also trumped expectations for quarterly profit with a 62% jump and said revenue growth was powered by continued strength in commercial PCs.

Dell's results come at a time when technology companies are battling a global chip shortage and supply chain disruptions made worse by the Ukraine war and fresh lockdowns in China.

Revenue at 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, compared with analysts' average estimate of $25.04 billion, according to Refinitiv data.

Net income from continuing operations rose to $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 in the day, chip firm Broadcom (NASDAQ:AVGO) Inc said it would buy VMware (NYSE:VMW) in a $61 billion cash-and-stock deal. The cloud computing firm was spun off from Dell in 2021.

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

Dell results surpass estimates on strong PC demand; shares jump
 

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