You are here
Dell beats profit estimates on higher desktop sales, shares surge
[BENGALURU] 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 per cent 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, in which it currently holds an 81 per cent 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 per cent jump in revenue in its client solutions business which makes desktop PCs, notebooks and tablets, and branded peripherals. Sales surged to US$11.75 billion from US$11.13 billion.
Dell posted net income of US$4.51 billion in the second quarter ended Aug 2, compared with loss of US$461 million a year earlier.
Excluding items, the company earned US$2.15 per share, above the average analyst estimate of US$1.47 cents per share.
Total revenue rose 2 per cent to US$23.37 billion.