Dell Technologies Q2 Profit Trounces Wall Street View

(RTTNews) - Dell Technologies (DELL) Thursday reported a profit for the second quarter that trumped Wall Street view, as revenues jumped 15%, driven largely by strong demand for products like desktops and notebooks.

Round Rock, Texas-based Dell's second-quarter profit slipped to $880 million or $1.05 per share from $1.10 billion or $1.37 per share last year.

Adjusted earnings were $1.91 billion or $2.24 per share for the period, up from $1.62 billion or $1.92 per share last year. Analysts polled by Thomson Reuters estimated earnings of $2.03 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 15% to $26.12 billion from $22.73 billion last year. Analysts had a consensus revenue estimate of $25.50 billion.

Client Solutions Group revenues grew to 27% to a record $14.3 billion, with commercial client revenue up 32% and consumer revenue up 17%.

Infrastructure Solutions Group revenue rose 3% to $8.4 billion, as servers and networking revenue was up 6% and storage revenue slipped 1%.

"We had strong results again this quarter, with all business units growing," said Tom Sweet, chief financial officer, Dell Technologies. "We are creating long-term value by taking share, pursuing high-value growth opportunities and profitably growing and modernizing our core business. For example, in the storage space, VxRail orders were up 34% and PowerStore continues to ramp up nicely."

DELL closed Thursday's trading at $101.55, down $0.51 or 0.50%, on the Nasdaq. The stock further slipped $1.55 or 1.53% in the after-hours trading.