Shares of Dell Technology (DELL) surged Friday after the computer hardware giant beat analysts’ estimates for its fiscal first quarter, helped by strong commercial PC sales. Dell stock rose nearly 13% following the news.
The Round Rock, Texas-based company late Thursday said it earned $1.84 an adjusted share from sales of $26.12 billion in the quarter ended April 29. Analysts polled by FactSet expected Dell earnings of $1.39 from sales of $25.03 billion. On a year-over-year basis, Dell’s earnings grew 36% as sales grew 16%.
Dell’s infrastructure solutions sales grew 16% to $9.3 billion, led by server and network revenue.
Dell’s personal computer sales rose 17% to $15.6 billion. Commercial PC sales rose 22% to $12 billion in the first quarter while consumer PC sales inched 3% to $3.6 billion.
Dell shares rise
On the stock market today, Dell stock rose 12.9% to close at 49.58. In normal trading on Thursday, Dell shares rose 1.5% to 43.93.
“Our first quarter – with record Q1 revenue, operating income and diluted EPS – demonstrates the benefits of having a strong, geographically diverse and well-covered business. from the core data center to the cloud,” Chuck Whitten, co-CEO, said in a press release.
For the current quarter, Dell is expected to earn $1.63 a share adjusted on revenue of $26.6 billion, both up 10% from last year. That’s based on the midpoint of its instructions. Analysts modeled earnings of $1.47 per share on revenue of $25.53 billion for the fiscal second quarter.
Dell stock ranks fourth out of 13 stocks in IBD’s computer hardware and peripherals industry, according to the IBD Stock Checkup. It has a sub-standard IBD Composite Rating of 43 out of 99.
The IBD Composite Rating is a combination of key technical and fundamental indicators to help investors gauge the strength of Dell and others stock. The best growth stocks have a Composite Rating of 90 or higher.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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