Dell Technologies (DELL) stock is set to end the week on a positive note, trading higher Friday after the computer maker beat top- and bottom-line estimates for its second quarter and provided a strong outlook for the third quarter and full fiscal year.
In the three months ended August 2, Dell's revenue increased 9.1% year-over-year to $25 billion, driven by an 80% spike in servers and networking revenue to a record $7.7 billion. Its earnings per share (EPS) increased 8.6% from the year-ago period to $1.89.
"We executed well in Q2, and I'm really proud of our team and our performance," said Dell Chief Operating Officer Jeff Clarke on the company's conference call. "Our AI momentum accelerated in Q2 and our results and outlook demonstrate that we are uniquely positioned to help customers leverage the benefits of artificial intelligence."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came in ahead of analysts' expectations. Wall Street was anticipating revenue of $24.5 billion and earnings of $1.71 per share, according to Yahoo Finance.
On the conference call, Dell said it anticipates full-year revenue in the range of $95.5 billion to $98.5 billion and earnings of $7.80 per share, plus or minus 25 cents. Analysts are forecasting revenue of $96.3 billion and earnings of $7.70 per share.
For the third quarter, Dell expects revenue to arrive between $24 billion to $25 billion and earnings of $2 per share, give or take 10 cents. Analysts are guiding for revenue of $24.6 billion and earnings of $2.20 per share.
Is Dell stock a buy, sell or hold?
The tech stock has had a great run so far in 2024, rising nearly 50% year to date and outperforming the broader market. Even after the significant rally, analysts think Dell stock has more room to run.
According to S&P Global Market Intelligence, the consensus analyst target price for the blue chip stock is $152.17, representing implied upside of more than 30% to current levels. Meanwhile, the consensus recommendation is a Buy.
Financial services firm UBS Global Research maintained its Outperform rating (equivalent to a Buy) on DELL stock but lowered its price target to $158 from $164 following the earnings release.
AI server demand strength and strong infrastructure solutions group (ISG) margins should help drive multiple expansion, says UBS analyst David Vogt.
Related Content
-
Five FAQs About 529 College Savings PlansThanks to recent policy changes, families have more options for what to do with money sitting in tax-advantaged 529 accounts.
-
7 Best Places in the US for Wellness Tourism — Beyond CaliforniaCalifornia doesn't have a monopoly on wellness tourism. These U.S. retreats offer exercise, relaxation and good food in stunning scenery that might be closer to home.
-
To Future-Proof Retirement Security, We Need Better StrategiesWith retirees living longer and the inequalities that affect women and people of color, the retirement system needs some optimization. Here’s what would help.
-
Here's Why We All Win When Charitable Dollars Go to WomenGiving to charities for women and girls not only has a lasting impact on their lives — it also benefits society as a whole. Here’s how to start investing.
-
Stock Market Today: Stocks Close Mixed Amid War Angst, Nvidia AnxietyMarkets went into risk-off mode amid rising geopolitical tensions and high anxiety ahead of bellwether Nvidia's earnings report.
-
What the Comcast Cable Spinoff Means for InvestorsComcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.
-
TJX Stock: Wall Street Stays Bullish After EarningsTJX stock is trading lower Wednesday despite the TJ Maxx owner's beat-and-raise quarter, but analysts aren't worried. Here's why.
-
Target Is the Worst S&P 500 Stock After Earnings. Here's WhyTarget stock is down big after the retailer missed expectations for its third quarter and slashed its full-year outlook. Here's what Wall Street is saying.
-
For a More Secure Retirement, Build in Some 'Safe Money'To solidify your retirement plan, write it down, reduce your market risk and allocate more safe money into your plan for income.
-
Five Steps to a Mindfully Fearless CareerIf, like many women, you're struggling with imposter syndrome, try developing an athlete's winning mindset. It's as simple as facing one small fear every day.
