(News Bulletin 247) – Dell Technologies reported last night a quarterly profit above expectations thanks to strong demand for its servers, while playing the card of caution in its forecasts.
The net profit of the American computer manufacturer for the three months ended at the end of October, the third quarter of its fiscal year, stood at 241 million dollars, against 3.9 billion a year earlier.
Excluding exceptional items, its earnings per share (EPS) stood at 2.30 dollars, against 1.66 dollars a year earlier.
Its turnover fell by 6% over the period to 24.7 billion dollars.
For comparison, analysts on average expected EPS of $1.60 for sales of $24.4 billion.
If Dell did not provide any numerical forecast for the last quarter of its 2022/2023 fiscal year, the Texan group was rather cautious in its comments.
‘Despite better than expected performance over the past quarter, the management team maintained a cautious tone regarding the current demand environment, with consumers increasingly reluctant to spend in the short term’ , commented Credit Suisse analysts.
The research department – which displays an ‘outperformance’ opinion on the title – thus lowers its target price from 56 to 53 dollars.
‘The increasingly obvious weakness in demand logically leads to forecasts below the usual trends as the new fiscal year approaches’, add Wells Fargo teams.
The Californian broker, which displays an ‘overweight’ recommendation on Dell – also lowered its target, reduced from 58 to 52 dollars.
At 9:40 a.m. (New York time), the stock was up 0.3%, a performance perfectly in line with that of the S&P 500 index.
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