Dell Sinks Despite Posting Solid Earnings Growth in Q1
Dell Technologies reported its fiscal first-quarter financial results before the markets opened on Thursday and shares retreated.
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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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