Dell Surges After Hours on Strong Outlook Despite Weak Results

(Seoul=Yonhap Infomax) Yong Wook Kwon – Dell Technologies Inc. (NYSE: DELL) delivered a robust earnings outlook driven by artificial intelligence (AI) server sales, despite posting weaker-than-expected results for the third quarter. The company’s shares surged sharply in after-hours trading.

According to CNBC on the 25th (local time), Dell reported third-quarter adjusted earnings per share (EPS) of $2.59 and revenue of $27.0 billion. While EPS exceeded the consensus estimate of $2.47, revenue fell short of the market expectation of $27.1 billion.

Dell projected fourth-quarter revenue of $31.5 billion, significantly above the market consensus of $27.59 billion. The company also forecast fourth-quarter EPS at $3.50, surpassing the market estimate of $3.21.

Dell raised its annual AI server shipment forecast from $20 billion to $25 billion and adjusted its full-year total revenue outlook from $107.0 billion to $111.7 billion.

As a major supplier of systems based on NVIDIA Corp.'s (NASDAQ: NVDA) graphics processing units (GPUs), Dell’s performance is viewed as a key indicator of the health of the AI infrastructure sector.

Meanwhile, Dell shares traded at $129.25 in after-hours trading, up nearly 3% from the previous close.

ywkwon@yna.co.kr

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