Dell Shares Soar 12% after Posting Q1 Earnings
Dell Technologies has just shared its earnings for the first quarter of the running year. The computer hardware and chipmaker have shared very promising earnings for the respective quarter.
The most promising thing for the entire shareholder community is that this isn’t the first time Dell Technologies has generated very strong earnings. Dell Technologies has reported a very high revenue as well as earnings. It exceeded the estimates for earnings and revenue with flying statistics.
The reason behind the Success of the Recent Quarter
The executives at Dell Technologies have confirmed throughout the quarter, that they have continued recording a high/robust demand. Their segment for commercial PCs has also generated above-expectation earnings.
It would be an even more promising factor for the entire shareholder community knowing that all segments for Dell Technologies have performed really well.
Right after sharing the news, the stocks for Dell Technologies have experienced a 12% rise. The tech giant reportedly experienced a rise in the extended trading hours.
First Quarter Earnings
In the earnings, Dell Technologies has posted that it generated earnings worth $1.84 per share. The year-over-year growth Dell Technologies has recorded is 36%.
The analysts at Refinitiv had estimated that Dell Technologies would generate $1.40 per share worth of earnings. For the same quarter of the year 2021, Dell Technologies had posted earnings worth $1.35 per share.
The revenue reported by Dell Technologies for the same quarter is worth $26.12 billion. The revenue estimation that the Refinitiv analysts had made for the same quarter was worth $25.2 billion. For the year-over-year revenue, Dell Technologies reported a 15.6% surge.
Dell Technologies also confirmed that their Infrastructure Solutions Group revenue has grown at a really high scale. The particular segment alone generated revenue worth $9.3 billion, recording a 16% rise compared to the same quarter last year.
The Client Solutions Group segment for Dell Technologies has also recorded a 17% growth in this particular quarter. The particular sector was responsible for generating $15.6 billion worth of revenue.
Dell Technologies has also confirmed that it has recorded a significant rise in its recurring revenue, which is at $5.3 billion, jumping by 15%.
Commentary by the Management
Tom Sweet, the CFO at Dell Technologies commented on the recent performance of Dell Technologies. He stated that they have worked really hard in building up a strong growth strategy. By strictly implementing the strategy, they have successfully increased the cash flow.
Stock Actions by Major Investment Firms
Looking at the performance of Dell Technologies, the analysts at Raymond James have reiterated the buy rating for its stocks. Previously, they had set the price target for Dell Technologies to $57, which has been upgraded to $58.
The Wall Street analysts have also upgraded the stock status for Dell Technologies. Based on the recent changes and upgrades, it is being proposed Dell Technologies may experience a 21.61% stock price rise in the running quarter.