It was Dell’s first results since it returned to the public markets and it beat Wall Street estimates for quarterly revenue and predicted higher than expected future results.
Revenue in its Infrastructure Solutions Group, which houses its servers and network device business, rose 10 percent to $9.9 billion. Servers and networking revenue rose 14 percent to $5.3 billion.
Client Solutions Group segment revenue rose four percent to $10.9 billion. The unit holds its desktop PCs, notebooks and tablets, as well as branded peripherals business.
Excluding some items, Dell expects full-year 2020 revenue between $93 billion and $96 billion, mostly above analysts’ estimate of $94.11 billion.
Its expectations for annual adjusted earnings per share between $6.05 and $6.70 falls below Street estimates of $6.81.
Dell did not report earnings per share for fiscal 2019 due to certain transactions.
Dell Chief Financial Officer Tom Sweet said: “I don’t think full-year 2020 will be quite as strong from a year-over-year revenue growth perspective, but I do think that we will continue to improve profitability over the course of the year.”
Excluding the impact of purchase accounting of $167 million, the company posted total revenue of $24 billion, above estimates of $23.83 billion.
For the fourth quarternet loss attributable to Dell jumped three-fold to $299 million. Operating expenses surged 13.7 percent to $6.78 billion.