Dell Technologies late Thursday beat Wall Street's earnings target for its fiscal third quarter but missed views on sales. Dell stock fell in extended trading.
The Round Rock, Texas-based company earned an adjusted $1.88 a share on sales of $22.25 billion in the quarter ended Nov. 3. Analysts polled by FactSet had expected earnings of $1.46 a share on sales of $23.01 billion. Dell's earnings declined 18% from the same quarter last year while revenue dropped 10%.
Dell's fiscal Q3 report marked its fifth straight quarter of declining sales on a year-over-year basis.
Dell's Infrastructure Solutions Group reported $8.5 billion in sales, down 12% year over year. The group sells servers, storage and networking gear. Meanwhile, the company's Client Solutions Group, which sells desktop and notebook PCs, posted sales of $12.3 billion, down 11%.
Dell Stock Is A Recent Breakout
"Our servers and networking business was up 9% sequentially fueled by customer interest in generative AI," Chief Operating Officer Jeff Clarke said in a news release. "And heading into FY25, we expect revenue growth given the tailwinds to our business."
In after-hours trading on the stock market today, Dell stock fell 3.8% to 72.99. During the regular session Thursday, Dell stock rose 1.2% to close at 75.94.
On Nov. 6, Dell stock broke out of a double-bottom base at a buy point of 70.77, according to IBD MarketSmith charts. On Wednesday, it notched a record, regular-session high of 76.09.
Dell ranks third out of 14 stocks in IBD's Computer Hardware and Peripherals industry group, according to IBD Stock Checkup. Dell stock has an IBD Composite Rating of 83 out of 99.
Last week, industry peer HP delivered in-line results for its fiscal fourth quarter ended Oct. 31. But its outlook for the current quarter was slightly below views.
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