Dell Technologies Inc (NYSE: DVMT)
Shares of Dell Technologies Inc. gained 2.7% before the bell Monday after the company reported earnings per share of $2.33 on a revenue of $21.36 billion. The shares later lost 1.31% to trade $83.71 after the markets opened.
DMVT Earnings & Outlook
For the quarter ended May 4, Dell’s net loss reduced to $1.95 per share, or $636 million, from $2.29 per share, or 1.17 billion in the year-ago period. Earnings per share climbed to $2.33 from $0.59 in the same quarter last year.
Revenue increased by 19% to $21.36 billion., while Wall Street had estimated revenue of $19.37 billion. Commercial revenue was $7.4 billion, or a rise of 16%, while Client solutions $10.3 billion, or a rise of 14%.
Personal computer shipments grew 6.4%, while revenue in the VMware division climbed to $2.0 billion, or an increase of 12%.
Dell Technologies CEO Comments
Dell Technologies chief financial officer Tom Sweet said, “We had a strong first quarter with balanced growth across all business units, regions, and customer segments. Our broad set of capabilities, enhanced by our targeted investments over the last year, drove strong top-line momentum and improved profitability, allowing us to generate good operating cash flow and make progress paying down our core.”
The company’s Products & Operations Vice-chairman, Jeff Clarke also added, “The great momentum we saw exiting last year for servers and commercial client continued through the first quarter. We gained share in PCs and servers during the first calendar quarter and, when the numbers are revealed, expect to gain share in storage, as well. We’re pleased but not satisfied and will continue focusing our energy and resources on what matters most to our customers.”
Dell Technologies Inc. Company Profile
Dell Technologies Inc. engages in the design, development, manufacture, marketing, support and sale of information technology services and products globally.
The company has three segments of operation: Infrastructure Solutions Group, Client Solutions Group, and VMware. Under the Infrastructure Solutions Group, the company provides next-generation and traditional storage solutions comprising of scale-out files, object platforms, flash arrays, and other software solutions; and hype scale, tower, blade and rack servers.
The Client Solutions Group segment provides hardware consisting of workstations, notebooks, desktop personal computers; and branded peripherals, such as projectors and monitors; attached peripherals, software, and services including deployment and support, extended warranty, and configuration services.
The VMware segment provides mobility, compute, security, cloud, software and networking infrastructure including vSphere, vRealize, vSAN, and VMware NSX products. It also offers VMware Cloud solution, which enables users to secure, run, connect, manage, and connect applications across public and private clouds.
The firm also offers cyber security services; cloud native platform for IT operations and software development, intelligence-driven security solutions; cloud integration services; cloud-based infrastructure and software services that allow customers to run, manage, and migrate mission-critical apps in cloud-based information technology environments.
Dell Technologies Inc. was established in 1984 and was known as Denali Holding Inc. until August 2016. Its headquarters are located in Round Rock, TX. –Reuters