Dell Technologies (DELL) beat expectations for its October quarter but offered sales slightly below estimates. Dell stock rose in late trades.
The Round Rock, Texas-based computer maker earned an adjusted $2.59 per share on sales of $27 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Dell to earn $2.47 per share on sales of $27.2 billion. On a year-over-year basis, Dell’s sales increased 11% while earnings rose 17%.
For the current quarter, its fiscal Q4, Dell forecasts adjusted earnings of $3.50 per share on sales of $31.5 billion. Wall Street was modeling earnings of $3.21 per share on sales of $27.6 billion.
“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date,” Dell Vice Chair and Chief Operating Officer Jeff Clark said in a news release.
Dell Stock Gains
On the stock market today, Dell stock gained more than 2% to 129.14 in extended trading. Shares were initially lower following the report before reversing.
Prior to earnings, Dell fell 1% in regular trading. Shares have gained 9% year-to-date, dragged down by a 22% decline in November. Rising memory chip prices have raised concerns on Wall Street about profit margins for computer makers.
Coming into the report, Dell stock had an IBD Composite Rating of 60 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
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