How Dell Managed to Pull Off a Win in Q2 Despite Huge Hurdles
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Dell Technologies Inc. (NYSE: DELL | DELL Price Prediction) reported its most recent quarterly results after the markets closed on Thursday. For the second quarter, the firm said that it had $1.92 in earnings per share (EPS) and $22.8 billion in revenue. Analysts were calling for $1.39 in EPS and revenue of $22.52 billion, and the same period of last year reportedly had EPS of $2.15 on $23.45 billion in revenue.
During the second quarter, the company saw total deferred revenue increase 14% year over year to $28.8 billion. Recurring revenue, which includes deferred revenue amortization, utility and as-a-service delivered as part of Dell Technologies on Demand, was roughly $6 billion for the quarter, an increase of 15%.
At the same time, the Infrastructure Solutions Group revenue decreased 5% year over year to $8.2 billion. Storage revenue was down 4% at $4.0 billion, while servers and networking decreased 5% to $4.2 billion. Operating income for the segment was $973 million.
The Client Solutions Group revenue decreased by 5% to $11.2 billion. Commercial revenue shrank 11% to $8.0 billion, and Consumer revenue increased 18% to $3.2 billion. Operating income was $715 million.
VMware revenue grew 10% to $2.9 billion, driven by broad-based strength across a diverse product portfolio. Operating income for the second quarter was $894 million.
The company offered no guidance in the filing. However, the consensus forecast is $1.29 in EPS and $22.05 billion in revenue for the fiscal third quarter.
Management noted that during the second quarter, the company saw strength in the government sector and in education, with orders up 16% and 24%, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning.
Dell stock hit a new 52-week high of $67.33 a share early Friday. The consensus price target was $62.89 on last look.
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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.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
