Dell stock takes off after reporting Q4 earnings beat
Dell Technologies (DELL) stock is popping off in after-hours trading while reporting fourth-quarter earnings results on Thursday. The computer company posted $22.32 billion in revenue — against estimates of $22.15 billion — and saw adjusted EPS gains of $2.20 — against estimates of $1.72 per share. Dell will be raising its dividend to shareholders to $1.78 per share.
Yahoo Finance Live breaks down the figures and monitors Dell's stock momentum.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Let's get to some breaking earnings news. Right now, we start with Dell. The stock is higher by almost 19% after numbers beating on the top and bottom line. Let's run through them quickly. Shall we? Adjusted earnings per share coming in at $2.20, that's above estimates. Revenue did fall year over year by 11% as the company has seen slowing growth. But it's still better than estimated $22.3 billion.
Analysts had been looking for $22.1 billion. And both of the company's main business lines saw decreases infrastructure solutions as well as client solutions. The infrastructure group beat estimates, the client solutions group missed estimates. Josh.
JOSH LIPTON: Yeah. So here's-- I mean, what's impressive about this truly is this stock had roared into this print. I mean, it was already up about 20% this year. It was up about 130% over the past 12 months. And now you can see what we're doing here at least, initially in the after hours. Some key themes I'm really interested to hear about from the company is one, as you mentioned, they're color on the PC market now and looking ahead.
What are they seeing for consumer sales? For corporate sales? As you noted, that falls into the company's so-called client solutions group. What's interesting, we heard from HP too this week, which reported weaker than expected sales. So it's just interesting that puts and takes as we-- some are banking on this PC recovery.
Also this is an AI story too. The company's AI servers that helps explain the move we have seen in this stock over the past 12 months. And analysts, I think want to know, OK, what is the AI order trajectory look like from here?
- And it seems like they're well poised to and well prepared to talk about that on the call, saying in the statement we've just started to touch the AI opportunities ahead of us. So we will definitely hear more about that. One more important thing to mention when it comes to Dell, the company is raising its annual dividend by 20%.
JOSH LIPTON: So some capital.
- To a $1.78 a share. So that also is helping matters when you look at how those shares are reacting.
JOSH LIPTON: Yeah. Most of the street are bullish on this name. And some will say, it's interesting. They think Dell is increasingly seen as this alternative to Cisco as the a one stop shop now for enterprise IT infrastructure and services which have been healthy. So, and you can see it being rewarded here in the after hours for sure.
