Dell Technologies beat Wall Street expectations for the third quarter, thanks to an improving supply chain that relieved pressure from higher component and freight costs, as well as cost-cutting measures such as a freeze on external hiring.
The company’s quarterly operating profit increased by 68%, while revenue in the infrastructure solutions group, which includes servers, storage devices, and networking hardware, increased by 12% in the third quarter.
Dell reported earnings per share before certain costs such as stock compensation of $2.30, easily beating the consensus estimate of $1.60. Revenue fell 6% to $24.7 billion, but was still higher than Wall Street’s target of $24.37 billion.
Meanwhile, Dell’s operating income increased to $1.76 billion, up from $1.05 billion the previous year. Overall, Dell’s net income was $241 million in the quarter, a 93% decrease from the previous year due to a $1 billion settlement paid out over a disputed 2018 stock swap involving its former interest in VMware.
The sources for this piece include an article in Reuters.
