Dell Technologies’ shares surged by over 15% in after-hours trading following the release of its fourth-quarter results for fiscal 2024. The company exceeded analysts’ expectations, particularly in the demand for its artificial intelligence servers.
The key figures from the report are as follows:
- Earnings per share: $2.20 adjusted versus $1.73 expected by LSEG, formerly known as Refinitiv
- Revenue: $22.32 billion as opposed to the anticipated $22.16 billion by LSEG
Although Dell’s revenue for the fiscal 2024 fourth quarter experienced an 11% decrease from the previous year, amounting to $25.04 billion, the company reported a net income of $1.16 billion, marking an 89% increase from the same period in the prior year.
Yvonne McGill, Dell’s Chief Financial Officer, expressed the company’s confidence in its business by announcing a 20% increase in the annual dividend, now standing at $1.78 per share.
The Infrastructure Solutions Group (ISG) reported $9.3 billion in revenue for the quarter, with a 10% increase from the third quarter, driven by AI-optimized servers. The Client Solutions Group (CSG) reported $11.7 billion for the quarter, with a decline of 12% year over year.
Jeff Clarke, Chief Operating Officer of Dell, highlighted the company’s strong AI-optimized server momentum, with orders increasing nearly 40% sequentially and backlog nearly doubling, reaching $2.9 billion at the end of the fiscal year.
Looking ahead, Dell anticipates reporting revenue between $21 billion and $22 billion for its first quarter. The company expressed optimism about AI momentum and expects to return to growth for fiscal 2025, despite some customers exercising caution due to the macroeconomic environment impacting infrastructure costs.
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