Strong PC demand drove Dell’s revenue in the third quarter
Revenue at Dell’s client solutions group rose 8 percent to $12.3 billion in the quarter
Staff or Guest writer for The Dog of Wall Street.
2020-11-26 13:18

Dell Technologies Inc. (DELL) recently announced its financial results for the third quarter that came in above consensus forecast. The better-than-expected results were helped by improved PC demand, as people started working from home following the Covid-19 outbreak. 

The Round Rock, Texas-based computer technology giant reported earnings of $881 million, or $1.08 per share for the quarter, as compared to $552 million, or 66 cents per share in the comparable period last year. On an adjusted basis, profit rose to $2.03 per share, versus $1.75 per share in the same quarter of 2019. 

Revenue came in at $23.52 billion, as compared to $22.93 billion last year. On the other hand, analysts surveyed by FactSet were expecting Dell to earn $1.41 per share on sales of $21.88 billion.

If we analyze the sales performance of key units, revenue at Dell’s client solutions group rose 8 percent to $12.3 billion in the quarter, while consumer revenue jumped 14 percent. Moreover, commercial client revenue increased 5 percent on a year-over-year basis. 

Speaking on the results, the company’s chief operating officer, Jeff Clarke said in a statement “we met unprecedented demand for remote work and learn solutions this quarter while increasing revenue to $23.5 billion. At the same time, we accelerated our as-a-Service strategy and hybrid cloud capabilities at the edge - positioning us to win in these growing markets and making it easy for customers to manage data and workloads across all their operations."

Dell (NYSE: DELL) shares slightly moved down in the last trading session despite reporting upbeat quarterly results. Overall, the stock has performed well this year. DELL share price has increased about 35 percent on a year-to-date basis, and nearly +66 percent over the past 6 months. 

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-26 13:18

About the Author
Staff or Guest writer for The Dog of Wall Street.

Services saves the year for Dell
The profitability isn’t the only concern for the company in its products division. Its cash flow statement shows that for the first half of the year, net income has dropped from $4,561 billion in 2019 to only $1,281 billion in 2020.
By Valdas S. | 9 months ago

Better Investment: Ford or General Motors
Both companies are firing on all cylinders right now.
By Mike Sakuraba | 5 days ago

2 China Stocks to Buy While Others are Fearful
Many of these stocks are at their cheapest levels in years, and yet investors simply do not want to deal with the uncertainty.
By Mike Sakuraba | 5 days ago

3 Stocks for Back to School
The dog days of summer have arrived, and with the arrival of September comes the return to school for students.
By Mike Sakuraba | 1 week ago

Better Investment: Coinbase or Robinhood
Coinbase and Robinhood are two of the biggest platforms in the investing world. Both of them offer investors the ability to buy or sell cryptocurrencies, while Robinhood also offers stock trading.
By Mike Sakuraba | 1 week ago

2 Buy Now Pay Later Stocks
There has been a sudden and very distinct shift in online shopping preferences over the past year.
By Mike Sakuraba | 2 weeks ago