On Thursday, Dell Technologies has topped the Street estimates regarding quarterly revenue in the computer producer’s report of first earnings since their public markets return. Forecasted annual revenue figures have also been found to be above estimates, owing to a boost by an increasing demand for the network devices and servers produced by them.
Dell is one of the recognized top players when it comes to the PC market. It made a comeback into the public market on December 28, following its purchase of interest connected to software maker VMware’s performance. Since then, their shares have seen a rise of more than 22%.
The Infrastructure Solutions Group houses the company’s network device and servers business. The revenues for the same rose 10% to a figure of $9.9 billion. Further, networking and servers revenue saw a surge of 14% to $5.3 billion. Additionally, the segment revenue of Client Solutions Group rose 4% to $10.9 billion. This unit caters to the firm’s notebooks, tablets, desktop PCs, along with its business of branded peripherals.
Barring a few items, Dell is expecting a complete-year 2020 revenue ranging between $93-96 billion. According to Refinitiv’s IBES Data, this figure is majorly above the estimates of $94.11 billion provided by analysts. Further, the company expects adjusted annual earnings for each share to fall in the range of $6.05–6.70. This mark is way below the Street estimate figures of $6.81.
Dell’s CFO Tom Sweet commented that he does not feel that complete-year 2020 will be as strong when considered from the perspective of revenue growth on a year-over-year basis. However, he is optimistic of improved profitability as the year progresses. Setting aside a figure of $167 million contributed to purchase accounting impact, the company has managed to post total revenue figures of $24 billion, which is above the $23.83 billion estimate. As on February 1, Dell’s net loss for fourth quarter saw an approximately three-fold leap to $299 million.
