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EARNINGS-Dell beats profit estimates on higher desktop sales, shares surge

Credit: REUTERS/BRENDAN MCDERMID

Dell Technologies Inc beat Wall Street profit estimates on Thursday boosted by a higher demand for its cloud services and personal computers, sending its shares up 6% in extended trading.

Adds share movement, background

Aug 29 (Reuters) - Dell Technologies Inc DELL.N beat Wall Street profit estimates on Thursday boosted by a higher demand for its cloud services and personal computers, sending its shares up 6% in extended trading.

The PC-maker returned to the stock market following a hiatus of six years in December last year after it bought back interest in software maker VMware VMW.N, in which it currently holds an 81% stake.

This allowed Dell to come back without the rigors of an initial public offering after it won backing from shareholders, including Carl Icahn.

Dell reported a 6% jump in revenue in its client solutions business which makes desktop PCs, notebooks and tablets, and branded peripherals. Sales surged to $11.75 billion from $11.13 billion.

Dell posted net income of $4.51 billion in the second quarter ended Aug. 2, compared with loss of $461 million a year earlier.

Excluding items, the company earned $2.15 per share, above the average analyst estimate of $1.47 cents per share.

Total revenue rose 2% to $23.37 billion.

(Reporting by Neha Malara in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)

((Neha.Malara@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 0344;))

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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