Dell Technologies Q3 Results Trump Street View On Strong Demand For PCs

(RTTNews) - Dell Technologies (DELL) Tuesday reported a profit for the third quarter that easily trumped Wall Street estimates, as revenues jumped 21%, driven largely by strong demand for its PCs.

Round Rock, Texas-based Dell's third-quarter profit rose to $3.89 billion or $4.87 per share from $881 million or $1.08 per share last year.

Adjusted earnings were $2.02 billion or $2.37 per share for the period, up from $1.71 billion or $2.03 per share last year. Analysts polled by Thomson Reuters estimated earnings of $2.18 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 21% to $28.39 billion from $23.48 billion last year. Analysts had a consensus revenue estimate of $26.82 billion.

Client Solutions Group revenues grew to 35% to a record $16.5 billion, with commercial revenue up 40% and consumer revenue up 21%.

The company said the segment's growth reflects continued increase in high-value segments, including commercial PCs, high-end consumer and gaming. The company also achieved its highest year-over-year PC share gain in history for calendar third quarter, with shipments up 26.6% and global PC share up 3.0 points to 17.4%.

Infrastructure Solutions Group revenue rose 5% to $8.4 billion, as servers and networking revenue was up 9% and storage revenue inched up 1%.

"We're three quarters into what will prove to be a historic year for Dell, and we are just beginning to write the next chapter of the Dell Technologies story," said Chuck Whitten, co-chief operating officer, Dell Technologies. "We are uniquely positioned in the data era, with durable advantages and in adjacent market-leading positions. Our strategy is focused on growing our core business and in adjacent multi-billion-dollar markets including multi-cloud, edge, telecom and as-Service."

DELL closed Tuesday's trading at $54.67, down $0.46 or 0.83%, on the Nasdaq. The stock, however, gained $0.81 or 1.48% in the after-hours trading.