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Dell beats revenue estimates in first report as public company

Reuters

By Vibhuti Sharma

Feb 28 () - Dell Technologies Inc topped Street estimates for quarterly revenue on Thursday in the computer maker's first earnings report since a return to public markets and also forecast annual revenue above estimates, lifted by demand for its servers and network devices.

Dell, one of the top players in the PC market, returned to public markets on Dec. 28 after it bought back interest tied to the performance of software maker VMware, and shares have risen more than 22 percent since then.

Client Solutions Group segment revenue rose 4 percent to $10.9 billion. The unit holds its desktop PCs, notebooks and tablets, as well as branded peripherals business.

Excluding some items, Dell expects full-year 2020 revenue between $93 billion and $96 billion, mostly above analysts' estimate of $94.11 billion, according to IBES data from Refinitiv.

Its expectations for annual adjusted earnings per share between $6.05 and $6.70 falls below Street estimates of $6.81.

Dell did not report earnings per share for fiscal 2019 due to certain transactions.

Dell Chief Financial Officer Tom Sweet referenced the dynamic macroeconomic environment in an interview to and said, "I don't think full-year 2020 will be quite as strong from a year-over-year revenue growth perspective, but I do think that we will continue to improve profitability over the course of the year."

Excluding impact of purchase accounting of $167 million, the company posted total revenue of $24 billion, above estimates of $23.83 billion.

Forrester analyst Glenn O'Donnell is bullish on both Dell and VMWare.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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