November 22, 2022
Dell Technologies beat Wall Street expectations for the third quarter, thanks to an improving supply chain that relieved pressure from higher component and freight costs, as well as cost-cutting measures such as a freeze on external hiring.
The company’s quarterly operating profit increased by 68%, while revenue in the infrastructure solutions group, which includes servers, storage devices, and networking hardware, increased by 12% in the third quarter.
Dell reported earnings per share before certain costs such as stock compensation of $2.30, easily beating the consensus estimate of $1.60. Revenue fell 6% to $24.7 billion, but was still higher than Wall Street’s target of $24.37 billion.
Meanwhile, Dell’s operating income increased to $1.76 billion, up from $1.05 billion the previous year. Overall, Dell’s net income was $241 million in the quarter, a 93% decrease from the previous year due to a $1 billion settlement paid out over a disputed 2018 stock swap involving its former interest in VMware.
The sources for this piece include an article in Reuters.
