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

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.

Business News, Market News, News, Stocks, Wall Street

Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.