Famous PC maker Dell Technologies’ (DELL) shares soared in price after the company reported better-than-expected third-quarter results on November 23, due primarily to strong PC demand. But can this demand be sustained in the near term? Let’s find out.Computer hardware giant Dell Technologies Inc. (NYSE:DELL) provides information technology solutions. The stock has lost 49% in price over the past month to close Friday’s trading session at $56.18. However, its shares soared after the company posted the ‘best third quarter’ in its history, driven by robust demand, durable competitive advantages, and strong execution.
DELL’s non-GAAP net revenue increased 21% year-over-year to $28.41 billion for its fiscal third quarter, ended October 29, 2021. Its adjusted EBITDA came in at $3.41 billion, up 6% year-over-year. Also, its non-GAAP net income increased 18% year-over-year to $2.02 billion, while its non-GAAP EPS came in at $2.37, representing a 17% year-over-year rise.
DELL’s stock edged up in price after the company completed the spin-off of VMware, Inc. (NYSE:VMW) on November 1, 2021. The spin-off included an $11.50 billion special cash dividend. In September 2021, DELL forecasted annual revenue growth of 3% - 4% through 2026, and announced plans for a $5 billion share repurchase. In addition, hedge funds’ interest in the stock has increased lately. So, DELL’s near-term prospects look promising.