Dell Technologies’ (DELL) stock is down 6% after the personal computer (PC) manufacturer posted mixed third-quarter financial results.
The company announced earnings per share (EPS) of $1.88 U.S., which was well above the Wall Street consensus of $1.46 U.S. per share.
However, Dell’s revenue came in at $22.3 billion U.S., down 10% from a year ago and below the $23 billion U.S. that analysts had forecast.
Profits were helped by a shift to the company’s higher-margin enterprise hardware products and lower component costs, said the company.
Revenues were hurt by ongoing weakness in corporate PC demand. Dell executives said that they expect a rebound in corporate PC sales globally over the coming year.
Revenue in the company’s Client Solutions Group that includes its PC sales declined 11% in the latest quarter to $12.3 billion U.S., while commercial client revenue was $9.8 billion U.S, below the $10.4 billion U.S. forecast on Wall Street.
Dell said revenue at its Infrastructure Solutions Group, which includes servers, networking, and storage hardware, totaled $8.5 billion U.S., which was ahead of consensus expectations of $8.3 billion U.S.
The company said backlog for artificial intelligence (A.I.) optimized servers doubled sequentially in the quarter. Dell said it shipped over $500 million U.S. of A.I.-optimized severs in the quarter.
Looking ahead, Dell said it expects revenue of $21.50 billion U.S. to $22.50 billion U.S. for the current quarter, below consensus estimates of $23.97 billion U.S.
The company forecast profits of $1.70 U.S. per share for this quarter, below the $1.82 U.S. that analysts had penciled in.
Dell bought back $744 million U.S. of its own stock in the previous quarter.
Shares of Dell Technologies have risen 86% this year. Prior to today (Dec. 1), the company’s stock was trading at $75.87 U.S. per share.
