Computer hardware giant Dell Technologies plunged Friday after it delivered mixed results for its fiscal second quarter, and warned of slowing demand for PCs, servers and other enterprise gear. Dell stock dropped by double digits.
The Round Rock, Texas-based company said late Thursday that it earned an adjusted $1.68 a share on sales of $26.4 billion in the quarter ended July 29. Analysts polled by FactSet expected Dell earnings of $1.64 a share on sales of $26.5 billion. On a year-over-year basis, Dell's earnings rose 14% while sales increased 9%.
"In Q2, we executed well and delivered strong financial results despite a rapidly changing and challenging macro environment," Co-Chief Operating Officer Jeff Clarke said in a written statement.
Demand for PCs and infrastructure solutions has slowed since late May, Clarke said. Infrastructure gear includes servers, storage and networking.
"The Q2 and second half macro dynamics have become more challenging as customers are taking a more cautious view of their needs given the uncertainty," Clarke said.
Dell Stock Retreats After Report
On the stock market today, Dell stock plummeted 13.5% to 41.43, exacerbated by a severe downturn for the markets on Friday. During the regular session Thursday, Dell stock rose 2.8% to close at 47.90.
Dell stock ranks fourth out of 13 stocks in IBD's computer hardware and peripherals industry group, according to IBD Stock Checkup.
But Dell stock has a subpar IBD Composite Rating of 45 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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