Computer hardware giant Dell Technologies (DELL) on Thursday smashed Wall Street’s estimates for its fiscal first quarter. Dell stock rose on the news.
The Round Rock, Texas-based company earned an adjusted $1.31 a share on sales of $20.92 billion in the quarter ended May 5. Meanwhile, analysts polled by FactSet had expected Dell earnings of 86 cents a share on sales of $20.27 billion. However, on a year-over-year basis, Dell earnings dropped 29% while sales declined 20%.
“We executed well against a challenging economic backdrop,” Chuck Whitten, Dell’s co-chief operating officer, said in a news release. “We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors.”
Dell’s Infrastructure Solutions Group reported $7.6 billion in sales, down 18%. The unit sells servers, storage and networking gear. Also, the company’s Client Solutions Group posted sales of $12 billion, down 23%. The division sells desktop and notebook PCs.
Dell Stock Rises After Early Report
Better-than-expected commercial PC sales and improved profit margins fueled Dell’s first-quarter beat, Evercore ISI analyst Amit Daryanani said in a note to clients. He rates Dell stock as outperform with a price target of 55.
Dell surprised Wall Street by releasing its earnings report an hour before the market closed. On the stock market today, Dell stock rose 1.5% to 45.47.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE: