DELL: Dell Stock Sinks 5% as Earnings Top Estimates but Revenue Slides Under Consensus

Soft demand for Dell’s PC products generated $22.3bn in revenue but enterprise sales pushed earnings per share to $1.88, topping the Street’s view.

• Dell stock DELL fell 5% to close Friday’s session at $71.93 a share after the company delivered a mixed bag of financial updates. For the latest quarter, the personal-computer maker posted $22.3bn in revenue, falling short of Wall Street’s consensus call for $23bn.
• The October-quarter profits saved the day as adjusted earnings arrived at $1.88 a share, beating the Street’s expectations of $1.46 a share. The company’s uplifting earnings figures were largely a result of a sales pivot to enterprise hardware, boasting wider profit margins.
• For the quarter ending January 31, Dell anticipates revenue in the ballpark of $21.5bn to $22.5bn, below analysts’ projections of $23.97bn. Adjusted profits are eyed at $1.70 a share, sliding under the Street’s view of $1.82. Shares of Dell are trading 75% higher on the year, boosted by the post-earnings rally in the previous quarter.