Dell’s AI servers sell like hotcakes again, driving a stunning earnings beat
Shares of the personal computer and data center server maker Dell Technologies Inc. rose more than 6% in late trading today after it reported earnings and revenue that easily beat expectations.
The company reported second-quarter earnings before certain costs such as stock compensation of $7.04 per share, breezing past Wall Street’s target of just $4.92 per share by a wide margin. Revenue for the period also came in higher, reaching $46.97 billion compared to the consensus estimate of just $44.92 billion, up an impressive 58% from the same period last year.
With such strong results, Dell’s profitability soared almost four-fold, with net profit rising from $1.16 billion in the year-ago period to $4.13 billion today.
Dell sees more good things coming too. For the third-quarter, it’s forecasting earnings of $6.50 per share on sales of $49 billion at the midpoint of its guidance range, implying growth of 81%. That compared with Wall Street’s consensus of earnings of just $4.49 per share on sales of $41.42 billion.
