Dell Technologies surpassed Street estimates for quarterly revenue on Thursday in the computer maker’s first earnings report since a return to portion publicly markets and also forecast annual revenue above estimates, lifted by demand for its servers and network devices.
Dell, one of the top sportswomen in the PC market, returned to public markets on Dec. 28 after it bought back interest tied to the performance of software maker VMware, and apportions have risen more than 22 percent since then.
Revenue in its Infrastructure Solutions Group, which quarters its servers and network device business, rose 10 percent to $9.9 billion. Servers and networking revenue awaken 14 percent to $5.3 billion.
Client Solutions Group segment revenue rose 4 percent to $10.9 billion. The segment holds its desktop PCs, notebooks and tablets, as well as branded peripherals business.
Excluding some items, Dell conjectures full-year 2020 revenue between $93 billion and $96 billion, mostly above analysts’ estimate of $94.11 billion, harmonizing to IBES data from Refinitiv.
Its expectations for annual adjusted earnings per share between $6.05 and $6.70 collapses below Street estimates of $6.81.
Dell did not report earnings per share for fiscal 2019 due to certain transactions.
Dell Chief Monetary Officer Tom Sweet referenced the dynamic macroeconomic environment in an interview to Reuters and said, “I don’t think full-year 2020 wishes be quite as strong from a year-over-year revenue growth perspective, but I do think that we will continue to improve profitability upon the course of the year.”
Excluding impact of purchase accounting of $167 million, the company posted total revenue of $24 billion, on high estimates of $23.83 billion.
For the fourth quarter ended Feb. 1, net loss attributable to Dell jumped nearly three-fold to $299 million. Carry oning expenses surged 13.7 percent to $6.78 billion.
Separately, Dell unit VMware Inc beat fourth-quarter gross income and profit estimates on strong demand for its software to boost cloud computing efficiency, sending its shares up 3 percent.
Forrester analyst Glenn O’Donnell is bullish on both Dell and VMWare.
“The companies press more than their share of critics, but both are executing well in ruthlessly competitive markets. You wont see AWS-like improvement numbers, but anyone who suggests these companies are dinosaurs — is just wrong,” he said, referring to Amazon.com Inc’s Amazon Web Servicings (AWS).
HP Inc on Wednesday reported quarterly revenue that fell short of estimates, due to weak demand in its printer as well as in its in the flesh systems businesses.