Dell Technologies forecast current-quarter sales above market expectations because of pandemic-driven shift to remote work and learning powered demand for its desktops and laptops, helping it post a surprise rise in third-quarter sales.
The business explained, on an earnings call with analysts, that it expects fourth-quarter revenue to grow 3% to 4%, implying a range between $24.18 billion and $24.42 billion, compared with analysts’ average expectation of $23.09 billion.
The PC maker’s shares were last up somewhat in volatile after-market trading, as adjusted earnings matched Wall Street expectations of $2.03 per share.
Consumers and companies are spending on laptops at a speed Dell hasn’t seen in more than a decade, according to an earnings presentation, helping its customer solutions group rake at a record $12.29 billion in earnings, up about 8 percent from a year before.
Global imports in the standard PC market, which includes desktops, notebooks, and workstations, jumped 14.6% year-over-year to 81.3 million units in the third quarter of 2020, according to data from IDC.
While the health crisis raised demand for Dell’s distant workstation products, the organization’s data centre business remained under pressure, together with revenue from the unit falling about 4% to $8.02 billion in the quarter.
Sales at VMware Inc climbed about 8 percent to $2.89 billion. Dell intends to spin off its 81% stake in the software unit to decrease debt.
Total revenue rose nearly 3 percent to $23.48 billion in the three months ended Oct. 30, while analysts had estimated a drop of 4.4percent to $21.85 billion, based on IBES data from Refinitiv.
Net income attributable to this firm rose to $832 million, from $499 million a year before.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Ayanti Bera in Bengaluru. Editing by Sriraj Kalluvila and Devika Syamnath.
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