Dell Beats Quarterly Estimates After Cost Cuts Despite 20 Percent Drop in Revenue

The results contrasted rivals HP and Lenovo Group, but a full recovery remains some ways off.

By Reuters | Updated: 2 June 2023 11:09 IST

Dell Beats Quarterly Estimates After Cost Cuts Despite 20 Percent Drop in Revenue

Dell's total operating expenses fell 6 percent during the first quarter

Highlights

Dell's client solutions unit posted a 23 percent fall in sales
Its infrastructure solutions unit saw an 18 percent decline
Excluding items, Dell earned $1.31 (roughly Rs. 108) per share

Better cost controls helped Dell Technologies beat estimates for first-quarter profit on Thursday, a positive sign for personal computer makers after months of cratering demand.

The results contrasted rivals HP and Lenovo Group, but a full recovery remains some ways off as Dell forecast current-quarter revenue below Wall Street targets and warned that IT spending would stay cautious.

Shares of the company were down 2 percent after the bell, reversing gains of 5 percent. The stock was briefly halted during regular trading hours when the company announced results earlier than scheduled.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

"We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors," said Chuck Whitten, co-chief operating officer of Dell.

Total operating expenses fell 6 percent to $3.57 billion (roughly Rs. 28,826 crore) during the first quarter.

The company's revenue dropped 20 percent to $20.92 billion (roughly Rs. 1,72,30,339 crore) but came in above analysts' expectations of $20.27 billion (roughly Rs. 1,66,91,838 crore), according to Refinitiv data.

Dell XPS Series Laptops Updated With 13th Gen Intel Core CPUs in India

Demand for desktops and laptops slumped after a pandemic-driven rush for work-from-home equipment, leading to a pile-up in inventory amid an uncertain economic outlook.

Dell's client solutions unit - home to its consumer and enterprise PC business - posted a 23 percent fall in sales, while the infrastructure solutions unit, which includes servers, storage devices, and networking hardware, saw an 18 percent decline.

Excluding items, Dell earned $1.31 (roughly Rs. 108) per share, compared with estimates of 86 cents.

Apple, Samsung Looking to Expand in India: MoS IT Rajeev Chandrasekhar

The Texas-based company expects second-quarter revenue to be between $20.2 billion (roughly Rs. 166,31,892 crore) and $21.2 billion (roughly Rs. 1,74,55,126), below expectations of $21.2 billion (roughly Rs. 1,74,55,126) at the midpoint.

© Thomson Reuters 2023

Samsung Galaxy A34 5G was recently launched by the company in India alongside the more expensive Galaxy A54 5G smartphone. How does this phone fare against the Nothing Phone 1 and the iQoo Neo 7? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.