Dell Sinks Despite Posting Solid Earnings Growth in Q1

By Chris Lange Updated Jan 12, 11:14AM EST · Published Jun 8, 10:25AM EDT

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Dell Sinks Despite Posting Solid Earnings Growth in Q1 — © Wikimedia Commons

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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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.