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Tag: DELL

  • Dell Technologies Soars on Impressive 2023 Financials

    Dell Technologies Inc. (NYSE: DELL) experienced a dynamic trading day, initially seeing a modest 1.5% increase to $94.66 during regular hours, but later witnessing a remarkable 20% surge in after-hours trading, propelling it into triple-digit territory.

    This dramatic shift followed the release of impressive sales and profit figures, attributed to the escalating demand for IT equipment tailored for artificial intelligence (AI) tasks.

    Positive Financial Performance and AI Demand

    Dell, recognized for its PC business, has garnered significant investor attention due to the soaring interest in its high-performance servers crucial for AI workloads.

    In the fiscal fourth quarter, the infrastructure unit, inclusive of servers, reported a noteworthy revenue of $9.33 billion, surpassing market expectations. Notably, the surge in sales was primarily attributed to AI-optimized servers, demonstrating the company’s alignment with the burgeoning AI market.

    Strategic Positioning and Challenges

    Jeff Clarke, the Chief Operating Officer of Dell, expressed confidence in the company’s strategic positioning, emphasizing its capability to cater to evolving AI demands. Clarke highlighted Dell’s unique portfolio, positioned to assist customers in developing cutting-edge AI solutions tailored to their performance, cost, and security prerequisites.

    However, Dell, akin to its industry counterparts, faces challenges related to chip shortages, hindering its ability to meet escalating demand. Despite improvements in lead times, the demand-supply imbalance persists. 

    Conclusion

    In the after-hours trading session, Dell’s stock reached a peak of $113.34, reflecting a remarkable doubling in value over the past year. This surge underscores investor optimism regarding the pivotal role of servers in the AI-driven purchasing cycle.

    Dell’s robust performance and strategic positioning amidst evolving technological landscapes suggest promising growth prospects, particularly in the flourishing AI domain. The sudden performance improvement with the stock has made it apparent that demand for DELL is really high in the market. The stock is definitely worth keeping an eye on, amid this bullish rush.

  • Dell Technologies Inc. (DELL) Posts a Record Q1 Fiscal 2023, Affirming its Buy Status

    2022 so far has been a year full of woes for the Financial markets, with the world still recovering from the pandemic that new throws from all directions came hitting hard. The Russian invasion of Ukraine fueling geopolitical turmoil on top of rising inflation, peaking interest rates, global supply chain constraints, and Covid-19 lockdowns has the markets crashing hard this year. The tech-heavy Nasdaq Composite is squared in the bear market territory while the S&P 500 recently had a near brush with it.

    As of now, both the composites are in the green and taking a sigh of relief as the Fed assured that it is well-equipped to navigate the economy away from a recession. However, the threat of a recession is increasing by the day as interest rates are set to rise further amid the huge inflationary pressure.

    With the year-to-date decline of equities, many strong companies’ stocks are now available at pennies for their value. One such undervalued stock with strong fundamentals and future growth trajectory is the 38-year-old tech giant, Dell Technologies Inc. (DELL). One of the only two PC-makers that managed to increase global shipments despite waning demand post-pandemic, DELL posted upbeat Q1 fiscal 2023 earnings on May 26, 2022. The company smashed first-quarter targets and surpassed estimates on commercial sales growth. Consequently, the stock surged by 10.18% in the pre-market session to trade at a price of $48.40 per share. This uptick came after the stock increased by 1.45% in the prior session at 6.9 million shares.

    DELL’s Performance

    Source: Company Presentation

    DELL has a proven track record of performance over the years, with its Q1 fiscal 2023 being another record quarter following the previous. The quarterly total net revenue rose by 16% YOY to a record $26.1 billion. Analysts were looking ahead to sales of $25.03 billion for the quarter. The infrastructure solutions sales were $9.3 billion (up 16% YOY), and Personal Computer sales were $15.6 billion (up 17% YOY). Commercial PC sales surged by 22% to $12 billion while consumer PC sales inched 3% to $3.6 billion.

    Posting a record operating income of $1.6 billion with an increase of 57%, the non-GAAP operating income was up by 21% to $2.1 billion.

    Furthermore, the net income from continuing operations rose by 62% on a GAAP basis and 36% on a non-GAAP basis. The adjusted diluted earnings amounted to $1.84 per share in the quarter with an uptick of 36% YOY. The earnings also surpassed the consensus estimate of $1.38 per share.

    At the end of the quarter, DELL has the remaining performance obligations of $42 million (up 14%) and deferred revenue of $27.4 billion. Cash and investments totaled $8.5 billion.

    Q2 & Fiscal 2023 Guidance

    For the ongoing Q2 fiscal 2023, DELL provided guidance of adjusted EPS of $1.55-$1.70 with revenues of $26.1-$27.1 billion. Both earnings and revenue are expected to grow 10% YOY at the midpoint of the guidance. On the other hand, analysts had the Q2, fiscal 2023 expectations pegged at EPS of $1.56 on revenues of $26.01 billion.

    Additionally, for the full fiscal year 2023, the company said that it expects diluted non-GAAP EPS growth of 12% or above and revenue growth of roughly 6%. Both Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) are expected to contribute to the revenue growth. Analysts have polled the full-year estimates at earnings of $6.52 per share on revenues of $104.38 billion.

    DELL’s Valuation

    DELL stock is currently trading very cheap with a 2023 forward price-to-earnings ratio of 7.7. Its forward price-to-sale ratio is 0.3 and its forward FCF yield is 15.7%. With a price target of $94.36 per share, the stock is very much undervalued. Compared to its peers like Apple, Microsoft, and the parent companies of Google and Facebook, DELL is the cheapest by miles.

    With shares down over 21% year to date and attractive valuations, the undervalued stock is very much a buy despite some marking it as a hold.

    Conclusion

    With a comprehensive IT solutions portfolio and strong competitive positioning, DELL has once again proved itself with better than forecasted Q1, earnings. The company not only posted a record quarterly earnings but also forecasted upbeat guidance for the ongoing quarter and year. Its valuation implies nearly 88% upside potential and being undervalued at the moment, the stock is a must-buy. The tech giant is poised for much growth in the future as it has kept the positive momentum going with its diverse portfolio of offerings despite a slowdown in PC demand post the pandemic highs.

  • Dell Technologies Inc. (DELL) declined in the current market; here is why?

    Dell Technologies Inc. (DELL) declined in the current market; here is why?

    Dell Technologies Inc. (DELL) declined in the current market after announcing its fourth quarter and fiscal 2021 results. DELL values at $51, losing more than 8% compared to yesterday’s closing price. The stock closed at $55.84 at the end of the last trading session. The stock volume traded in the last trading session was around 3.63 million shares. The current market cap of the company is around $43.37 billion.

    DELL: Q4 and Fiscal 2022 Key Financials

    • Dell Technologies Inc.’s revenue in Q4 2022 was $27.9 billion. It is a gain of more than 16% compared to the revenue of $24.2 billion in Q4 2021.
    • Fiscal year 2022 revenue was $101.19 billion, and it is an increase of more than 17% compared to the revenue of $86.6 billion in fiscal 2021.
    • The company’s net loss in Q4 2022 was around $29 million. The change is -(104%) compared to the net income of $695 million in Q4 2021.
    • DELL’s net income in fiscal 2022 was around $4.9 billion, more than 120%, compared to the net income of $2.245 billion in fiscal 2021.
    • The Q4 2022 diluted loss per share was $0.04, less than $0.90 of Q4 2021.
    • For fiscal 2022, earnings per share were $6.26, more than 114%, compared to the EPS of $2.93 in fiscal 2021.

    DELL Dividend Update

    The board of directors has authorized the implementation of a dividend policy. According to the company’s projections, it will pay quarterly cash dividends on its common stock at an initial dividend rate of $1.32 per share each year for fiscal 2023. The amount is around $1 billion. The board of directors has declared its first quarterly dividend of $0.33 per share, which will be paid on April 29 to shareholders who had their accounts with records as of April 20.

    Conclusion

    The company’s net income declined in the fourth quarter of 2022, but its income gained by more than 120%. The supply chain disruption caused by Omicron has effect the business in the fourth quarter.

  • Dell Technologies inc. (DELL) stock is rising in the after-market; here’s what is behind the movement

    Dell Technologies Inc. (DELL) shares were rising 8.5% to trade at $100.58 in after-market at last check. DELL’s stock gained 0.18% to close Wednesday’s session at $92.70. The volume traded of DELL stock today was 2.64 million shares.

    Dell announces the spin-off of VMware

    On 14th April 2021, Dell announced that it is planning to spin-off VMware; this segment well be converted into two standalone public companies. DELL stock has 81% equity in VMware. This is a strategically strong move as the market is expanding towards the cloud and digitization era; having two countries focused towards this segment will be able to adapt and expand in the ever-growing digital market.

    What is VMware?

    Dell Technologies is an IT company that designs, manufactures and markets IT products and solutions globally. The company has three segments of business operations;

    VMware is the segment that focuses on what the customer’s customized IT requirements are and provides them the solutions. The services range from cloud journey acceleration, application upgrade and update, digital workspace enhancement, enhance networking, and strengthening intrinsic security. VMware also deals with digitalization, cloud-based integration services, and cyber-security solutions.

    Infrastructure Solutions Group (ISG)deals with the classic and next-gen storage solutions. They also deal in tower, rack, blade, and hyperscale servers. It offers networking products and services as IT solutions to make business clients’ networking infrastructure customized and effective.

    Client Solutions Group (CSG) deals with the product offerings of IT hardware and configuration support. The hardware category includes workstations, notebooks, desktops and projectors; it also includes the third-party software that comes with the hardware products. CSG offers warranties, deployment and configurations supports as well.

    How will the spin-off transaction proceed?

    Dell expects the transaction to occur in the fourth quarter of 2021 subject to certain conditions.  One of the conditions includes getting a receipt from IRS for a letter ruling that the transaction to qualify as generally tax-free for Dell Technologies shareholders.  This would be more convenient for shareholders in regards to U.S. federal income tax purposes.

    VMware and Dell Technologies gave this decision a comprehensive review in which both companies unanimously decided this transaction will simplify cost structures along with creating additional enterprise value for the long term. Cash dividend of $11.5 -$12 billion will be divided by VMware to all its shareholders, including Dell Tech. Dell will receive $9.3-$9.7 billion from this cash dividend and use the proceeds to pay its debt. This will place DELL stock in the right position for investment grade ratings.

    The senior-most executives, Michael Dell (chairman and CEO of Dell Tech) and Zane Rowe (interim CEO of VMware) as well as VMware BOD will retain their original positions after the completion of the spin-off.

    Is Dell Technologies Inc. hiving certain parts of its businesses?

    Dell Technologies is potentially looking into divestiture of Boomi that could value up to $3 billion. The matter of potential sale of cloud business Boomi comes in Bloomberg report, citing people familiar with the matter. Boomi focuses on integrating different cloud platforms for companies. However, at this point, there is no confirmed news that could guarantee to Boomi’s selling off.

    Recently the CEO Michal Dell has been trimming down the company and cleaning up its balance sheet to reduce Dell’s dependency on hardware sales; going into the business model of computer-service subscriptions.

  • Early Morning Vibes: Check Out These 4 hot Stocks Right Now

    Early Morning Vibes: Check Out These 4 hot Stocks Right Now

    On February 1, the American stock exchanges finished trading in the green zone. The S&P 500 Index climbed 1.61% to 3774 points, the Dow Jones added 0.76% and the NASDAQ rose 2.55%. Fears about the impact of short squeezes on the market have slightly subsided, and quarterly reports and macro statistics returned to the focus of investors’ attention. The cyclical consumer goods sector topped the broader market, gaining 2.77% on positive gains from Amazon and Tesla. The tech sector also outperformed the market, adding 2.51%.

    Corporate Details

    Ford (F: + 2.9%) announced a strategic partnership with Google (GOOGL: + 3.6%) for EV software.

    ON Semiconductor (ON: + 6.4%) came out better than expected, mainly driven by the automotive components segment.

    Virgin Galactic (SPCE: + 21.5%) announced plans to test launch its SpaceShipTwo Unity rocket after February 13.

    Today world stock exchanges are showing positive dynamics. Recovery of quotations after a sharp drop last week continues. President Biden discussed with a group of Republicans the stimulus package. Negotiations have made little progress, but GOP officials said Biden is willing to make concessions on some points of the program. The president has not yet rejected the possibility of a “reconciliation” procedure, through which a package of $ 1.9 trillion can be passed through a simplified vote in Congress, even without the support of the Republicans.

    Concerns about the impact of short squeezes on the market were largely eliminated by the comments of investment banks, which noted the presence of numerous factors favorable for the development of an upward trend, including a strong reporting season. Due to the effect of inflated expectations, the shares of many reported companies corrected, but a positive reaction may follow with some delay.

    The Freedom Finance Sentiment Index remains at 68 out of 100. The index reflects market participants’ hope for a global economic recovery in 2021. Concerns about the negative impact of the coronavirus pandemic are gradually diminishing thanks to the prospect of mass vaccinations.

    Technical picture

    Technically, the S&P 500 is still bullish in the medium term. The day before, the broad market index bounced off the 50-day moving average, at the level of which buying activity intensified. In the short term, consolidation is likely, as the RSI indicator is in the neutral zone and indicates the equality of forces between the “bulls” and “bears”.

    Today Top Movers

    ‎Prothena Corporation plc (PRTA) share price jumped 29.55% to $14.25 during the early morning ‎trading session on ‎Tuesday after declaring confirmatory phase 3 AFFIRM-AL study of Birtamimab in mayo Stage IV Patients with AL Amyloidosis under SPA Agreement with FDA.‎
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    ‎Nio Inc (NIO) stock ascended 1.09% at $57.61 in the pre-market trading today.‎ after the company provides January 2021 Delivery update.
    ‎ ‎‎
    ‎GoPro Inc (GPRO) gained over 8.17% at $11.39 in pre-market ‎trading on Tuesday.‎ ahead of its earnings scheduled on 4 Feb.
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    ‎Virgin Galactic Holdings Inc (SPCE) grew over 10.04% at $59.19 in pre-market trading ‎today. The company recently revealed the date of its new flight window for a rocket-powered test flight of its SpaceShipTwo Unity.‎

    Top Upgrades & Downgrades

    Evercore ISI Group turned bullish on TETRA Technologies Inc. (TTI), upgrading the stock to “Outperform” and assigning a $3.0 price target. 

    Dell Technologies Inc. (DELL) has won the favor of B of A Securities’ equity research team. The firm upgraded the shares from Neutral to Buy and moved their price target to $80.0, suggesting 29.73% additional upside for the stock. 

    Rio Tinto Group (RIO) received an upgrade from analysts at Credit Suisse. They changed their rating on RIO to Outperform from Neutral in a recently issued research note. 

    Earlier Tuesday Piper Sandler reduced its rating on argenx SE (ARGX) stock to Neutral from Overweight and assigned the price target to $303. 

    Cowen analysts reduced their investment ratings, saying in research reports covered by the media that it’s rating for Limelight Networks Inc. (LLNW) has been changed to Market Perform from Outperform and the new price target is set at $4.75. 

    Analysts at Compass Point downgraded Hilltop Holdings Inc. (HTH)’s stock to Neutral from Buy Thursday.

    Latest Insider Activity

    Inovio Pharmaceuticals Inc. (INO) Chief Operating Officer Shea Jacqueline Elizabeth announced the sale of shares taking place on Jan 28 at $12.04 for some 16,713 shares. The total came to more than $0.2 million. 

    DuPont de Nemours Inc. (DD) President, T&I Stone Randy Lee sold on Jan 28 a total of 30,622 shares at $79.97 on average. The insider’s sale generated proceeds of almost $0.25 million. 

    VYNE Therapeutics Inc. (VYNE) 10% Owner PERCEPTIVE ADVISORS LLC declared the purchase of shares taking place on Jan 28 at $2.37 for some 4,219,409 shares. The transaction amount was around $10.0 million. 

    Alcoa Corporation (AA) Director Nevels James E bought on Jan 27 a total 32,336 shares at $17.50 on average. The purchase cost the insider an estimated $7,000.

    Important Earnings

    Top US earnings releases scheduled for today include Pfizer Inc. (NYSE: PFE). It will announce its Dec 2020 financial results. The company is expected to report earnings of $0.48 per share from revenues of $11.43B in the three-month period. 

    Analysts expect Alibaba Group Holding Limited (NYSE: BABA) to report a net income (adjusted) of $3.25 per share when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Dec 2020 is predicted to come in at $33.35B. 

    Amazon.com Inc. (AMZN), due to announce earnings after the market closes today, is expected to report earnings of $7.23 per share from revenues of $119.7B recently concluded three-month period.