Earnings Forecast and Stock Performance - Dell expects Q4 revenue between $24 billion and $25 billion, with adjusted earnings of $2.50 per share, below analyst estimates of $25.5 billion and $2.65 per share [2] - HP projects Q1 earnings per share between 70 cents and 76 cents, compared to analyst estimates of 85 cents [3] - Dell's shares dropped to $124, marking the largest dip since a 17.8% decrease on May 30 [1] - HP's shares fell to just over $34, on track for its worst loss since March 2020 when shares dropped over 14% in a single day [2] - Dell's shares had increased by 89.5% this year before Wednesday, while HP's shares had risen by more than 31% [5] AI Market and Business Performance - Dell's COO Jeff Clarke described the AI market as a "robust opportunity" with "no signs of slowing down," but noted that Dell's AI business "will not be linear" due to a "changing" market [3] - Dell reported $800 million in AI server sales and a $2.9 billion order backlog in March, contributing to a record high stock price [6] - HP's CEO Enrique Lores suggested the company would benefit from the transition to an upgraded Windows operating system, though the transition has been slower than expected and sales have plateaued [6] Financial Results and Valuation - Dell reported Q3 earnings of $2.15 per share, beating analyst estimates of $2.06, and revenue of $24.4 billion, slightly below estimates of $24.67 billion [4] - Dell founder and CEO Michael Dell's fortune decreased by approximately $7.1 billion due to the drop in Dell's shares, leaving him with a net worth of $103.7 billion [7]

Dell Technologies Inc. DELL reported better-than-expected earnings for its third quarter, while sales missed estimates.The company reported quarterly earnings of $2.15 per share, which beat the analyst consensus estimate of $2.05. Quarterly revenue came in at $24.37 billion, which missed the consensus estimate of $24.65 billion and is an increase over revenue of $22.25 billion from the same period last year."We continued to build on our AI leadership and momentum, delivering combined ISG and CSG revenue of ...

Dell Technologies (DELL -12.00%) stock tumbled 11% through 10:05 a.m. ET Wednesday after the company reported mixed earnings last night.Heading into the report, analysts forecast Dell would earn $2.06 per share in Q3. Dell beat that number, reporting pro forma profits of $2.15. However, the company's quarterly revenue fell short of expectations at $24.4 billion, versus Wall Street's expected $24.7 billion. Dell Q3 earnings were a mixed bagSales still grew 10% year over year, however, led by the company's in ...

Group 1 - The core investment thesis revolves around Dell Technologies Inc. (NYSE: DELL) being positioned to benefit from the growth in AI and data centers, which is expected to drive significant growth in their infrastructure business [1] - The company employs a rigorous research-driven approach to identify high-conviction stocks with strong growth potential across sectors such as big tech, semiconductors, AI, and healthcare [1] - The investment strategy includes analyzing both low-risk and selective high-risk opportunities that have the potential to outperform the market [1] Group 2 - The article emphasizes the importance of thorough research and strategic foresight in making investment decisions to help investors navigate complex market conditions [1] - The focus is on providing sophisticated stock picks that combine innovation with high-upside potential, aimed at securing strong returns for investors [1]

Core Insights - Dell Technologies reported non-GAAP earnings of $2.15 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate by 4.37% and showing a year-over-year increase of 14.4% [1][2] - Revenue for the quarter rose 9.5% year over year to $24.37 billion, although it fell short of the consensus estimate by 0.79% [2] - The company has maintained its strong fiscal 2025 guidance for revenues and earnings, which is expected to enhance share price momentum [3] Revenue Breakdown - Product revenues increased by 12.7% year over year to $18.29 billion, surpassing the Zacks Consensus Estimate by 0.89% [4] - Services revenues grew by 1% year over year to $6.08 billion, missing the Zacks Consensus Estimate by 4.6% [4] - Infrastructure Solutions Group (ISG) revenues surged 33.8% year over year to $11.37 billion, driven by strong demand in servers and networking, which saw a 58.2% year-over-year growth [5] - Client Solutions Group (CSG) revenues were $12.13 billion, reflecting a decline of 1.2% year over year, with commercial client revenues increasing by 3.1% and consumer revenues decreasing by 18.4% [7] AI and Server Performance - Dell achieved a record $3.6 billion in AI-optimized server orders, primarily from Tier 2 cloud service providers and growing enterprise demand [6] - The company shipped $2.9 billion worth of AI servers in Q3, with a healthy AI server backlog of $4.5 billion [6] Operating Performance - Non-GAAP gross profit for Q3 increased by 3.1% year over year to $5.44 billion, while gross margin contracted by 140 basis points to 22.3% [8] - Non-GAAP operating income rose by 12% year over year to $2.2 billion, with the operating margin contracting by 20 basis points to 9% [10] Financial Position - As of November 1, 2024, Dell had $5.23 billion in cash and cash equivalents, up from $4.55 billion as of August 2, 2024 [11] - Total debt increased to $25.02 billion from $24.52 billion during the same period [12] - The company generated $1.55 billion in cash flow from operations and returned $725 million to shareholders through share repurchases and dividends [12] Fiscal 2025 Guidance - For Q4 fiscal 2025, Dell expects revenues between $24 billion and $25 billion, indicating a 10% growth at the midpoint [13] - Non-GAAP earnings are projected to be $2.5 per share, reflecting a 14% growth at the midpoint [14] - For the full fiscal year 2025, revenues are anticipated to grow by 9%, with non-GAAP earnings expected to reach $7.81 per share, up 10% year over year [14]

Core Insights - Dell Technologies is projecting weaker revenue from AI server sales in Q4, which may be attributed to unexpected factors [1] Group 1 - The company has indicated a decline in AI server revenue expectations for the fourth quarter [1] - The reasons behind this decline may be surprising to stakeholders [1]

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U.S. stock futures were lower this morning, with the Dow futures falling around 50 points on Wednesday.Shares of Dell Technologies Inc. DELL fell sharply in today's pre-market trading following third-quarter results.Dell Technologies reported quarterly earnings of $2.15 per share, which beat the analyst consensus estimate of $2.05. Quarterly revenue came in at $24.37 billion, which missed the consensus estimate of $24.65 billion and is an increase over revenue of $22.25 billion from the same period last yea ...

Core Insights - Dell reported third-quarter revenue of $24.4 billion, reflecting a 10% year-on-year increase, but fell short of analysts' expectations of $24.67 billion [2][3] - The Infrastructure Solutions Group (ISG) saw a significant revenue increase of 34% year-on-year, reaching a record-high of $11.4 billion, driven by strong demand for AI servers and related technologies [3][4] - Despite strong growth in the AI sector, Dell's shares dropped 12% in premarket trading due to a lower-than-expected fourth-quarter revenue outlook, projected between $24 billion and $25 billion, compared to analysts' forecast of $25.5 billion [4][5] Revenue Breakdown - ISG revenues reached $11.4 billion, with server and networking revenue increasing by 58% year-over-year to $7.4 billion [3] - Client Solutions Group (CSG) revenue declined by 1% year-over-year to $12.1 billion, with commercial client revenue growing by 3% but consumer revenue falling by 18% [6] AI Business Performance - Dell's AI operations are positioned as a key growth area, with AI server orders reaching $3.6 billion in Q3 and a pipeline growth of over 50% [4][7] - The company shipped $2.9 billion in AI servers during the quarter and has established partnerships, including one with Nvidia for an AI factory for Elon Musk's xAI [7]

Dell’s (NYSE: DELL) share price is spiraling downward as investors digest the company’s third-quarter earnings and future forecasts.At the close of the latest trading session, Dell was trading at $141.74, ending the day down 1.7%. The weakness extended into pre-market trading on November 27, where the stock has plunged over 13% to $123. Despite this dip, Dell remains green for 2024, gaining almost 90% year-to-date.DELL one-day stock price chart. Source: Google FinanceWhy DELL share price is plunging This de ...