Laptop-maker Dell Technologies (NYSE:DELL) announced record financial results for its fiscal 2022 third quarter, generating record revenue of $28.4 billion, up 21% compared with analysts’ average of $26.82 billion.
The company reported adjusted earnings of $2.37 per share and grew 17% from adjusted earnings of $2.03 per share reported in the same quarter last year.
The profit surge was largely driven by a boost in demand for personal computers and servers by businesses increasingly adopting hybrid work models. As millions of consumers adopt a learn and work from home culture amidst the covid-19 pandemic, the need for better and faster computers is rising.
According to International Data Corp, the global PC market has grown for six consecutive quarters. Chief Financial Officer Tom Sweet at Dell said in a statement: “The digital trends are tailwinds for our business, and along with our strategy and financial flexibility, lead us to be optimistic about our long-term growth prospects.”
KEY HIGHLIGHTS:
1. Dell achieved the highest year-over-year PC share gain in its history for the third quarter calendar.
2. Continues Growth in its diverse portfolio by tapping into high-value segments.
The company has surpassed consensus EPS estimates four times over the last four quarters. Revenue at Dell’s client solutions units rose 35% in the quarter on an operating income of $1.1 billion, while revenue from its infrastructure solutions group was up 5% at $8.4 billion in the quarter.
The company benefits from having a diverse portfolio of software and hardware revenue streams and, is now trying to tap into high-growth markets such as edge computing, cloud, and telecoms which gained traction since the beginning of the pandemic.
Net income surged to $3.89 billion in the third quarter ended Oct. 29, from $881 million a year earlier. Non-GAAP net income was $2.0 billion, and adjusted EBITDA was $3.4 billion. Dell’s new off-cloud computing unit, VMware, posted a 10% rise in revenue during the quarter.
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