Dell Technologies Inc. reported quarterly revenue that topped analysts’ estimates bolstered by continued strong demand for personal computers needed for work and study from home. Sales rose 9 per cent to US$26.1 billion in the period that ended Jan. 29, the Round Rock, Texas-based company said Thursday in a statement. That compares with an average analyst estimate of US$24.5 billion, according to data compiled by Bloomberg. Profit, excluding some items, was US$2.70 a share. Analysts projected US$2.14 a share.
Under Chief Executive Officer Michael Dell, the company is trying to reduce its dependence on one-time lower margin hardware sales and transform itself into a seller of subscription-based computer services. While that shift is ongoing, the company still gets about half of its revenue from sales of PCs to commercial and consumer customers.
Earlier, rival HP Inc. also reported quarterly sales that topped estimates on vigorous consumer demand for the company’s laptops and personal printers.
Dell shares closed at US$79.72 in New York. The stock has increased about 9 per cent this year.
Fiscal fourth-quarter revenue from consumer PCs jumped 19 per cent to US$3.8 billion, the company said. That compares with a 14 per cent expansion in the prior period. PC sales to business and government agencies rose 16 per cent to US$9.9 billion.
Server and networking sales gained 3 per cent to US$4.4 billion from a year earlier, breaking a streak of seven consecutive quarters of year-over-year declines, while storage hardware revenue fell 2 per cent to US$4.4 billion.
Sales from VMware Inc., which is majority-owned by Dell, was US$3.3 billion. The publicly traded company offers software for data centers. VMware Chief Executive Officer Pat Gelsinger left the company to become CEO of Intel Corp. earlier this month. Dell is considering plans to spin off VMware, but has said it won’t make a decision until after September 2021.
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