Dell Technologies Tops Second-Quarter Targets On Strong PC Sales

 Dell Technologies Tops Second-Quarter Targets On Strong PC Sales

Computer hardware giant Dell Technologies (DELL) late Thursday handily beat expectations for its fiscal second quarter, thanks to healthy personal computer sales. But Dell stock fell in extended trading.


The Round Rock, Texas-based company earned an adjusted $2.24 a share on sales of $26.1 billion in the quarter ended July 30. Analysts had expected Dell earnings of $2.03 a share on sales of $25.6 billion, according to FactSet. On a year-over-year basis, Dell earnings rose 17% as sales climbed 15%.

“We had strong results again this quarter, with all business units growing,” Chief Financial Officer Tom Sweet said in a written statement. “We are creating long-term value by taking share, pursuing high-value growth opportunities and profitably growing and modernizing our core business.”

Dell did not provide guidance for the third quarter in its earnings news release.

Dell Stock Drops Late

In after-hours trading on the stock market today, Dell stock dropped 3%, near 98.50. During the regular session Thursday, Dell stock dipped 0.5% to 101.55.

On Tuesday, Dell stock broke out of a cup-with-handle base at a buy point of 100.93, according to IBD MarketSmith charts.

Dell’s PC sales rose 27% to $14.3 billion in the fiscal second quarter. The work-from-home and school-at-home trends spurred by the Covid-19 pandemic continue to fuel PC sales.

However, revenue in Dell’s Infrastructure Solutions Group rose just 3% to $8.4 billion. The unit sells enterprise servers, networking and storage gear.

Dell’s VMware (VMW) subsidiary posted sales of $3.1 billion, up 8%.

HP Misses Sales Target

Meanwhile, industry peer HP (HPQ) reported mixed quarterly results late Thursday.

The Palo Alto, Calif.-based company earned an adjusted $1 a share on sales of $15.29 billion in its fiscal third quarter ended July 31. Analysts expected HP earnings of 84 cents a share on sales of $15.9 billion. On a year-over-year basis, HP earnings jumped 104% as sales rose 7%.

For the current quarter, the PC and printer maker forecast adjusted earnings of 87 cents a share, based on the midpoint of its outlook. It did not provide a sales target. Wall Street had expected HP earnings of 81 cents a share on sales of $15.99 billion in the fiscal fourth quarter.

HP stock fell 1.7%, near 28.60, in late trades. During the regular session Thursday, it slipped 1% to 29.10.

Dell Stock Is No. 1 In Group

Dell stock ranks first out of 12 stocks in IBD’s Computer-Hardware and Peripherals industry group. It has an IBD Composite Rating of 86 out of 99. HP stock ranks fourth in the group with a Composite Rating of 70.

IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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