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Dell Technologies (DELL) posted mixed first quarter results on Thursday, releasing net revenue figures of $23.38 billion (vs. estimates of $23.15 billion) while adjusted earnings came out to $1.55 per share (shy of estimates for $1.69).
Julie Hyman and Josh Lipton dive into Dell's report as the computer company's second quarter revenue forecasts blew past Wall Street consensus and where it stands amid AI server demands.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
All right, Dell earnings coming in now. Let's get you those numbers. This stock is shooting higher here, more than 7% in the after hours. Q1 uh adjusted EPS 155 versus 169. Revenue 23.38 billion versus an estimate of 23.15 billion. But now let's get to the guidance. They are calling for Q2 revenue 28.5 billion to 29.5 billion. The street was at 25.35 billion and they see in uh the AI server backlog that growing to 14.4 billion. The estimate Julie looks like it was 7.88 billion. Healthy beat helps explain why the stocks moving higher.
Yeah.
Yes, most definitely. I'm just looking at the statement here. So the company is talking about that they saw growth throughout their different core businesses here. So if you look at those core businesses, they have two main groups, right? They have the infrastructure solutions group and the client solutions group. In infrastructure, the revenue rose by 12%. As part of that, servers and networking up 16%, storage up 6%. So it's really that server business that we have talked about that is sort of tied to the AI data center trade that has been doing well at Dell. Uh for the client solutions group, there we saw slower growth. Overall, revenue was up 5%, commercial client revenue up 9%. This was interesting. Consumer revenue, that's a place that's been lagging and saw a decrease of 19% there. So really the standout is again in servers and networking.
Very interesting what they have to say about the PC market on the call, any more color there, consumer sales, corporate sales would be interesting as well. Uh the AI story as you were pointing out, Julie, the company's AI servers. What what do they think the AI order trajectory is going to look like and what kind of color and insight they give us on there. You know, the stock heading into this print, I mean was basically flat this year. It was down about 40% over the past 12 months, but it's it's still a name that is the street is very broadly positive on. The average target is still around 130 on this one.
I mean, remember this stock sort of caught fire in 2024 in part alongside Nvidia and winning some of those data center contracts. It shot higher uh it reached a peak in May. Actually, wait, what's today? May 29th. It's record high. Look at this. Was on May 29th, 2024. Exactly a year ago today, this stock was closed at 17921. So you can see obviously it's down considerably from those levels.
Yeah.
Yes.