Dell Technologies Shares Slip 8.3% on Lower 2Q Profit
August 25 2022 - 4:19PM
Dow Jones News
By Denny Jacob
Dell Technologies Inc. shares slipped 8.3% to $43.92 in
after-hours trading after the company posted lower profit and
revenue growth that came short of analysts' expectations as costs
of revenue rose.
The computer equipment maker posted net income of $511 million,
or 68 cents a share, for the second quarter ended July 29, compared
with net income of $831 million, or 80 cents a share, a year
earlier. Adjusted earnings were $1.68 a share, slightly above
analysts' expectations of $1.64.
Revenue rose 9% to $26.43 billion from $24.19 billion, which the
company attributed to continued growth across its infrastructure
and client business units. Analysts polled by FactSet had expected
$26.50 billion.
Total costs of revenue grew to $20.99 billion from $18.72
billion, a 12% year-over-year increase.
Dell delivered growth across its business units but observed
more cautious customer behavior as the quarter progressed, said
Co-Operating Chief Chuck Whitten.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
August 25, 2022 17:04 ET (21:04 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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