Dell Technologies (DELL) slightly exceeded Wall Street's sales target for the fourth quarter of its fiscal year, but exceeded earnings guidance. Dell's results report caused a switch in the actions in the extended transactions.
Dell did not specify earnings per share or gave guidance in its press release after the market closed. In documents later released for its conference call with analysts, Dell said it had earned adjusted earnings of $ 1.86 per share in the fourth quarter ended Feb. 1. Sales grew 9% to $ 23.84 billion this quarter.
Analysts were forecasting a profit of $ 1.81 per share for a $ 23.82 billion business figure.
It was the company's first earnings report since its return as a publicly traded company in late December.
Stock Dell hesitates at the end of the session
Dell's shares fell 1% on the stock market after office hours before the release of additional financial data. In subsequent transactions, it increased by 1.3%, following the publication of earnings per share and forecasts. Thursday, during the regular session, he plunged from 0.8% to 55.82.
For the current fiscal year, Dell expects to earn $ 6.38 per share for a $ 94.2 billion business figure. This compares to $ 5.94 per share on sales of $ 90.62 billion in the last fiscal year 2019.
"During fiscal year 2020, we will continue to manage the business in a disciplined manner," said Tom Sweet, chief financial officer, in a statement. "We will remain focused on creating long-term relative growth, equity gain and cash flow, while generating long-term shareholder value and responding to the needs of shareholders." to the full range of needs of our customers. "
Dell infrastructure, software units record double-digit gains
Dell divides its business into three reporting areas: Infrastructure Solutions Group, Client Solutions Group, and VMware.
In the fourth quarter, revenues from its Infrastructure Solutions group, which sells servers, storage and network devices, grew 10 percent to $ 9.9 billion.
Dell's customer solutions group saw its revenues rise 4 percent to $ 10.9 billion. The unit sells desktops and laptops, tablets and peripherals.
VMware's revenues were $ 2.6 billion for the quarter, up 17% from a year earlier.
Earlier Thursday, investment bank Morgan Stanley raised its target price on Dell shares from 49 to 60, while reiterating its rating to equal weight. The move reflected an increase in the value of Dell's publicly traded subsidiaries, including VMware (VMW), Pivot software (PVTL) and SecureWorks (SCWX).
In the fourth quarter, products accounted for 79% of Dell 's business, while services accounted for the remaining 21%.
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