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Dell Stock Skyrockets as Earnings Exceed Expectations, Signaling Strong Recovery in Demand

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Dell Posts Better-Than-Expected Financial Results

Dell Beats Expectations for PC and Enterprise Infrastructure Businesses

Dell Technologies

posted better-than-expected financial results, beating expectations for both its PC and enterprise infrastructure businesses. The company also provided guidance for the full year that topped previous Street estimates.

Strong Results in the Technology Sector

The strong results from


add to a stream of upbeat technology sector earnings reports this week, including better-than-expected results from







and Hewlett Packard Enterprise (HPE). The results are in contrast to a weaker-than-expected financial performance by

HP Inc.
Dell’s main rival in the PC market.

Financial Details

Dell shares were up 8.3% at $60.88 in late trading.

For the fiscal second quarter ended Aug. 4, Dell posted revenue of $22.9 billion, down 13% from a year ago, but up 10% sequentially, and $2 billion above the Street consensus forecast at $20.9 billion. The company’s forecast had called for revenue of $20.2 billion to $21.2 billion.

Dell earned $1.74 a share on an adjusted basis in the quarter, powering past both its own forecast for $1.10 and the Wall Street consensus call of $1.14. Under generally accepted accounting principles, the company earned 63 cents a share.

Cash flow from operations was $3.2 billion, while Street estimates had called for a loss on that basis of $465 million. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $2.6 billion, well above the consensus forecast of $2 billion.

The Client Solutions Group, the Dell PC business, had revenue in the quarter of $12.9 billion, down 16% from a year ago, but up 8% sequentially and well above the Street consensus of $12.1 billion. Both consumer and commercial PC revenues were above Street estimates.

Infrastructure Solutions Group, which includes servers and storage systems, had revenue of $8.5

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