After months of plummeting demand, Dell Technologies Inc. (DELL.N) exceeded first-quarter profit projections on Thursday thanks to better cost management.
Dell estimated current-quarter revenue below Wall Street forecasts and cautioned that IT investment would remain conservative.
After the bell, shares fell 2%, undoing 5% gains. When the corporation reported findings early, trading was halted.
“We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors,” said Dell co-chief operating officer Chuck Whitten.
First-quarter operating expenses declined 6% to $3.57 billion. According to Refinitiv statistics, the company’s revenue plummeted 20% to $20.92 billion but exceeded analysts’ projections of $20.27 billion.
After a pandemic-driven rush for work-from-home equipment, demand for PCs and laptops plummeted, leading to a stockpile in an uncertain economy.
Dell’s infrastructure solutions unit, which includes servers, storage devices, and networking hardware, fell 18%, while its client solutions unit, which includes consumer and enterprise PCs, fell 23%. Dell earned $1.31 per share, excluding adjustments, above projections of 86 cents.
The Texas-based corporation predicts second-quarter revenue between $20.2 billion and $21.2 billion, below middle expectations.`