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


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.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.