GoKawiilDell Technologies shares moved 9% higher in extended trading on Tuesday after the computer maker reported results and a forecast that easily cleared Wall Street expectations.
Here's how the company did relative to LSEG consensus:
Earnings per share: $7.04 adjusted vs. $4.92 expected
$7.04 adjusted vs. $4.92 expected Revenue: $46.97 billion vs. $44.92 billion expected
Revenue came in higher than every estimate, growing about 58% year over year for the fiscal second quarter, which ended on July 31, according to a statement. Net income of $4.13 billion, or $6.34 per share, increased from $1.16 billion, or $1.70 per share, in the same quarter a year ago. Adjusted earnings exclude impact from stock-based compensation.
For the fiscal third quarter, Dell called for $6.50 in adjusted earnings per share on $49.0 billion in revenue, which implies 81% growth. Analysts polled by LSEG had anticipated $4.49 per share and $41.42 billion in revenue.
Dell ratcheted up its full-year view. The company now sees $25.50 in adjusted earnings per share on $192 billion in revenue. Analysts surveyed by LSEG were expecting $18.92 per share and $172.67 billion in revenue. As of May, the company's 2027 guidance included $17.90 in adjusted earnings per share, with $165 billion to $169 billion in revenue.
Price increases brought on by climbing input costs factor in to the elevated revenue guidance, Jeff Clarke, Dell's operating chief, said on a conference call with analysts.
As of Tuesday's close, Dell shares had gained 236% year to date, while the wider S&P 500 index is up 11% over the same period. The stock has become a popular choice for investors who want to bet on the continuing growth of artificial intelligence infrastructure. In July President Trump, who has bought Dell shares since returning to office last year, again recommended buying Dell computers.
Michael Dell, the company's founder, chairman and CEO, is now the world's fifth richest person, according to Bloomberg calculations.
... continue reading