Dell revenue zooms past expectations on strong PC demand
2022.05.27 00:01
A person looks at a Dell laptop for sale in a store in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/Files
(Reuters) – Dell Technologies (NYSE:DELL) Inc beat revenue expectations for the ninth straight quarter on Thursday, as the PC maker saw robust demand for its computers and laptops as companies embrace a hybrid work model.
The company also posted a 62% jump in quarterly profit as businesses continue to heavily invest in remote-working equipment and consumers upgrade their devices.
Its results come at a time when technology companies are battling a global chip shortage and supply chains disruptions, made worse by the Ukraine war and fresh lockdowns in China.
Revenue at Dell’s client solutions group, which included its desktop PCs, notebooks and tablets, rose 17% in the quarter, while the company’s infrastructure solutions group, which sells data storage software and servers, posted a 16% increase in sales.
Total revenue rose 16% to $26.12 billion in the first quarter, compared with analysts’ average estimate of $25.04 billion, according to Refinitiv data.
Net income from continuing operations rose to $1.07 billion, or $1.37 per share, from $659 million, or 84 cents per share, a year earlier.
Excluding items, Texas-based Dell earned $1.84 per share.
Earlier in the day, chip firm Broadcom (NASDAQ:AVGO) Inc said it would buy VMware (NYSE:VMW) in a $61 billion cash-and-stock deal. The cloud computing firm was spun off from Dell in 2021.
Michael Dell, the nearly four-decade-old company’s founder and top boss, is VMware’s biggest investor with a 40% stake.
