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Dell results surpass estimates on strong PC demand; shares jump

Dell results surpass estimates on strong PC demand; shares jump

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

Dell Technologies beat revenue expectations for the ninth straight quarter on Thursday after enterprises invested heavily in its desktops and notebooks to support hybrid work.

The PC maker's shares jumped 7 per cent after the bell as it also trumped expectations for quarterly profit with a 62 per cent jump and said revenue growth was powered by continued strength in commercial PCs.

Dell's results come at a time when technology companies are battling a global chip shortage and supply chain disruptions made worse by the Ukraine war and fresh lockdowns in China.

Revenue at Dell's client solutions group - home to its hardware units - rose 17 per cent in the quarter, with commercial PC revenue jumping 22 per cent to US$12 billion.

Total revenue rose 16 per cent to US$26.12 billion in the first quarter, compared with analysts' average estimate of US$25.04 billion, according to Refinitiv data.

Net income from continuing operations rose to US$1.07 billion from US$659 million a year earlier.

Excluding items, Texas-based Dell earned US$1.84 per share, beating estimates of US$1.39 per share.

Earlier in the day, chip firm Broadcom Inc said it would buy VMware in a US$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 per cent stake.

Source: Reuters


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