Dell Technologies (NYSE: DELL) reported its second quarter financials for fiscal 2020 after the market close on Thursday. The computer maker reported better-than-expected earnings, causing shares to soar by 12% at the open on Friday.
For the second quarter, Dell reported earnings of USD 2.15 per share on revenue of USD 23.4 Billion. Zacks consensus estimated earnings of USD 1.46 per share on revenue of 23.3 Billion.
Infrastructure solutions group revenue declined by 7% to USD 8.6 Billion during the quarter. Storage revenue was flat at USD 4.2 Billion, while servers and networking decreased by 12% to USD 4.4 Billion.
Client solutions group reported revenue of USD 11.7 Billion at the end of the quarter, increasing by 6% year-over-year. Commercial revenue grew by 12% to USD 9.1 Billion, while consumer revenue slipped by 12% to USD 2.7 Billion.
Dell’s stronger-than-expected quarter was driven by the double-digit growth in its commercial notebooks, desktops, and workstations. Additionally, Dell also launched its Dell Technologies Cloud, which drove hybrid cloud environments to simplify deployment and management with consistent infrastructure, operations, and services.
VMware revenue was USD 2.5 Billion for the quarter, increasing by 12% year-over-year, largely due to broad-based strength across its product portfolio.
“We are in the early stages of a technology-led investment cycle. IT spending remains healthy and our business drivers remain strong,” said Jeff Clarke, Vice Chairman, Dell Technologies. “We are innovating and integrating across the Dell Technologies portfolio, from the edge to the core to the cloud, with a diverse business designed to succeed in any macro environment. For example, core Dell orders were up four percent in the quarter excluding China.”
Despite the stronger-than-expected quarterly report, Dell shares are only up 8.04% this year.