Key takeaways
- Dell Technologies shares fell from all-time highs Friday as the PC maker continues to face weakness in the consumer and business PC market.
- The company doesn't; fell short of quarterly revenue estimates and third-quarter sales fell in its customer solutions group. .
- Dell reported revenue gains in its servers and networking unit, driven by interest in artificial intelligence.
Shares of Dell Technologies (DELL) fell about 5% in early trading Friday as that the PC maker continued to struggle with the weak recovery of this market after the boom in demand during the period. pandemic.
The company reported Thursday that third-quarter fiscal 2024 revenue fell 10% from last year to $22.3 billion, below estimates. Earnings per share (EPS) of $1.88 beat forecasts.
Revenue at Dell's Customer Solutions Group, which includes consumer and enterprise PC sales, fell 11 percent to $12.3 billion, well below expectations. However, server and networking revenue increased 9% from the second quarter to $4.7 billion. Chief Operating Officer (COO) Jeff Clarke said the performance was driven by customer interest in generative AI and as the #39;fiscal 2025, “we expect revenue growth given the tailwinds for our business.”
Dell has forecast its sales for the current quarter of 22 billion dollars, less than expected. It raised its full-year EPS outlook to $6.63, plus or minus 10 cents, up from the previous forecast of $6.30, plus or minus 20 cents.
Despite Friday's losses, Dell shares remained near their all-time high after closing at an all-time high the day before, and have gained about 75% year to date.
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Source: investopedia.com
