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DELL Stock Gains 11% after Very Strong Q1 Fiscal 2023 Earnings

UTC by Bhushan Akolkar · 2 min read
DELL Stock Gains 11% after Very Strong Q1 Fiscal 2023 Earnings
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Dell has given better than expected revenue in comparison to Street estimates. Analysts are giving bullish price targets for the DELL stock.

On Thursday, May 26, Dell Technologies (NYSE: DELL) shared its earnings report for Q1 beating analysts’ forecast and topping revenue expectations. The better-than-expected results come on the backdrop of growing demand for enterprise computing hardware as well as the healthy sales of its business PCs.

Dell Technologies recorded a 16% growth in the first-quarter revenue at $26.1 billion. This was higher than the Street estimate of $25 billion. The earnings per share (EPS) also stood at $1.84 beating street expectations. The official press release notes:

  • The company generated a record first-quarter operating income of $1.6 billion, a 57% increase, and a record non-GAAP operating income of $2.1 billion, up 21%.
  • Net income from continuing operations was $1.1 billion, up 62%, and non-GAAP net income was $1.4 billion, up 36%, both driven by growth in operating income and lower interest expense due to reduced debt balances.
  • Diluted earnings per share stood at $1.37, up 63%. Similarly, the non-GAAP diluted earnings per share stood at $1.84, up 36%.

Dell Stock Jumps 11%

Soon after the company released its Q1 earnings report, the stock of Dell technologies climbed 11.86% in the aftermarket hours on Thursday. On a closing basis, the DELL stock was trading at $43.93 yesterday. In the pre-market session on Friday, it is trading at $49.14.

Amid the broader market correction, the DELL stock has already taken a beating correcting 23% year-to-date. However, post the results, analysts have turned bullish once again.

Evercore ISI analyst Amit Daryanani has given a price target of $60 for the DELL stock and has assigned an “outperforming” rating to the company. Speaking of the development, Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. said:

“We followed a record FY22 with a record first quarter FY23. Revenue was $26.1 billion, up 16%, with growth across our business units. We are built to outperform, in a balanced and consistent way across the company, as our customers invest in their digital futures and choose Dell as their trusted partner.”

“In our first quarter, we returned $1.75 billion to our shareholders through a combination of share repurchases and dividends. We are delivering long-term value by executing our strategy for growth, taking share, generating strong cash flow from operations and executing our capital allocation framework,” said Tom Sweet, chief financial officer, Dell Technologies.

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