Michael Dell, Chairman and CEO of Dell Applied sciences, is talking on the Cell World Congress 2024 in Barcelona, Spain, on February 27, 2024.
Joan Cros | Nurphoto | Getty Pictures
Dell reported first-quarter earnings on Thursday that beat analyst estimates for earnings and gross sales, as the corporate has emerged as one of many prime distributors for AI servers.
Shares fell about 12% in prolonged buying and selling. When the corporate reported earnings in February, it reported earnings per share that had been considerably increased than expectations. This quarter, Dell’s earnings had been consistent with Wall Avenue’s forecast.
This is how Dell did versus LSEG consensus estimates:
- EPS: $1.27 adjusted versus $1.26 estimated
- Income: $22.24 billion versus $21.64 billion estimated
The corporate mentioned it could challenge steering for the present quarter on the decision.
Dell reported $955 million in internet earnings through the quarter, or $1.32 per diluted share, versus $578 million, or 79 cents, within the year-ago interval. Total gross sales through the quarter had been up 6% on an annual foundation.
Dell’s division together with knowledge heart gross sales, known as Infrastructure Options Group, noticed gross sales rise 22% on an annual foundation to $9.2 billion. The corporate mentioned that servers had been a fast-growing unit, with gross sales rising 42% to $5.5 billion, and known as out robust demand for AI servers.
Dell has emerged as a prime vendor for AI-oriented servers, that are in excessive demand as corporations spend money on infrastructure for predictions and generative AI. Earlier this 12 months, Nvidia CEO Jensen Huang known as out Dell founder Michael Dell at a convention because the individual to contact to position orders for the corporate’s new chips.
Dell mentioned that it recorded $2.6 billion of “AI-optimized” server orders through the quarter.
Earlier than Thursday’s report, Dell shares had greater than doubled in 2024.
Dell’s division for PCs and laptops, known as Consumer Options Group, confirmed flat development on an annual foundation with gross sales of $12.0 billion.
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