Shares of Dell Technologies (NYSE: DELL) closed 10.2% higher Friday after the PC-maker beat analyst estimates for second-quarter sales and earnings.
Expected to earn $1.47 per share pro forma on sales of $23.2 billion, Dell instead reported profits of $2.15 per share on sales of $23.4 billion. Generally accepted accounting principles (GAAP) net income per diluted share was an even more impressive $4.83.
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Operating profits are back in positive territory. Dell earned a 19.3% net profit on its revenues -- $4.5 billion -- and cash from operations tipped the scales at $3.3 billion.
Things may get even better from here. Dell chairman of the board Jeff Clarke commented that Dell appears to be "in the early stages of a technology-led investment cycle. IT spending remains healthy and our business drivers remain strong."
Upping its guidance accordingly, Dell now predicts that fiscal 2020 revenues (Dell's fiscal year runs a year ahead of the calendar year) will range from $93 billion to $94.5 billion, a bit better than the $93.5 billion Wall Street consensus at the midpoint of that range. Pro forma profit estimates now call for earnings of $6.95 to $7.40, far ahead of the $6.42 analyst consensus.
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