Dell Technologies Inc. has seen the future of computing, and it increasingly is AI instead of PC. Dell’s stock
DELL,
+1.51%
jumped 15% in extended trading Thursday after the company put up quarterly results that eclipsed Wall Street’s expectations. It also announced a 20% increase in its annual cash dividend, to $1.78 per share
The personal-computer company, fueled by a surge in demand for AI servers, reported fiscal fourth-quarter net income of $1.16 billion, or $1.59 a share, compared with net income of $606 million, or 84 cents a share, in the same quarter a year ago. Adjusted earnings were $2.20 a share. Net revenue slumped 11% to $22.3 billion from $25 billion in the year-ago quarter. Dell Chief Operating Officer Jeff Clarke noted $800 million in AI-server shipments during a conference call with analysts, but warned of a “soft” PC market that could extend into the second half of 2024. “The demand is in excess of supply,” Clarke said, explaining the popularity of AI servers and related services. AI-server demand and a rebound in PC sales in late 2024 should lead to growth of 3% to 5% in fiscal 2025, Dell executives said. They forecast fiscal 2025 annual sales of $91 billion to $95 billion. FactSet analysts are modeling for $92.2 billion. Earlier this week, Dell announced a lineup of new laptops and PCs featuring neural-processing units designed to run AI workloads. Analysts surveyed by FactSet had expected on average net income of $1.7 …
Article Attribution | Read More at Article Source
DELL,
+1.51%
jumped 15% in extended trading Thursday after the company put up quarterly results that eclipsed Wall Street’s expectations. It also announced a 20% increase in its annual cash dividend, to $1.78 per share
The personal-computer company, fueled by a surge in demand for AI servers, reported fiscal fourth-quarter net income of $1.16 billion, or $1.59 a share, compared with net income of $606 million, or 84 cents a share, in the same quarter a year ago. Adjusted earnings were $2.20 a share. Net revenue slumped 11% to $22.3 billion from $25 billion in the year-ago quarter. Dell Chief Operating Officer Jeff Clarke noted $800 million in AI-server shipments during a conference call with analysts, but warned of a “soft” PC market that could extend into the second half of 2024. “The demand is in excess of supply,” Clarke said, explaining the popularity of AI servers and related services. AI-server demand and a rebound in PC sales in late 2024 should lead to growth of 3% to 5% in fiscal 2025, Dell executives said. They forecast fiscal 2025 annual sales of $91 billion to $95 billion. FactSet analysts are modeling for $92.2 billion. Earlier this week, Dell announced a lineup of new laptops and PCs featuring neural-processing units designed to run AI workloads. Analysts surveyed by FactSet had expected on average net income of $1.7 …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]