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Shares of Dell Technologies popped more than 18% in extended trading Thursday after the company released fourth-quarter results that beat analysts’ estimates and showed strong demand for its artificial intelligence servers.
Here’s how the company did:
- Earnings per share: $2.20 adjusted vs. $1.73 expected by LSEG, formerly known as Refinitiv
- Revenue: $22.32 billion vs. $22.16 billion expected by LSEG
Dell’s revenue for the fourth quarter fell 11% from $25.04 billion in the year ago quarter. The company reported a net income $1.16 billion, up 89% from the $614 million it posted in the same period last year.
CFO Yvonne McGill said in a release the company is increasing its annual dividend by 20% to $1.78 per share, which she called a “testament to our confidence in the business.”
Dell’s Infrastructure Solutions Group (ISG) reported $9.3 billion in revenue for the quarter, down 6% year-over-year but up 10% from the third quarter. Servers and networking revenue made up the bulk of that, with $4.9 billion in revenue driven by “AI-optimized servers.” Storage revenue came in at $4.5 billion.
The company’s Client Solutions Group (CSG) reported $11.7 billion for the quarter, down 12% year-over-year. That includes $9.6 billion in commercial client revenue, which fell 11% since the fourth quarter of last year, and $2.2 billion in consumer revenue, down 19% year over year.
“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” Chief Operating Officer Jeff Clarke said in the release.
Dell will hold its quarterly call with investors and discuss its financial guidance at 4:30 p.m. ET.
Source link: https://www.cnbc.com/2024/02/29/dell-shares-soar-20percent-after-beating-earnings-expectations-cites-rising-demand-for-ai-servers.html