Dell Sinks Despite Posting Solid Earnings Growth in Q1

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Dell Technologies Inc. (NYSE: DVMT) reported its fiscal first-quarter financial results before the markets opened on Thursday. The company said that it had $1.2 billion in net income and $17.8 billion in revenue. The same period of last year reportedly had $539 million in net income on revenue of $12.2 billion.

During the quarter, the Client Solutions Group segment recorded revenues of $9.1 billion, an increase of 6%, with an operating income of $374 million. The Infrastructure Solutions Group generated $6.9 billion in revenue, an increase of 91%, with an operating income of $323 million. The VMware segment revenue for the first quarter was $1.7 billion, with operating income of $486 million.

On the books, Dell’s cash, cash equivalents, and short-term investments totaled $11.2 billion at the end of the quarter, down from $11.4 billion at the end of the previous fiscal year.

Chief Financial Officer Tom Sweet commented:

We’re pleased with overall results in the first quarter of our new go-to-market structure and the demand velocity we saw in a challenging component cost environment. I’m encouraged by these achievements and excited about the opportunities ahead as we continue to provide a broad portfolio of solutions for our customers’ digital transformations.

Shares of Dell were trading down 3% at $65.81 on Thursday, with a consensus analyst price target of $75.00 and a 52-week range of $42.02 to $69.72.