On Tuesday, Dell Incorporated registered mixed financial data in the third fiscal quarter, highlighting weakness in the market.
Its stock price slipped by -1.68% to $141.74 per share on November 26’s Asian afternoon session. More concretely, it is anticipated to slide further by -11.29% to $125.75 apiece in the market after hours.
Additionally, the company’s earnings per share (EPS) rose to $2.15, surpassing the experts’ outlook of $2.07 and the previous $1.89 data.
On the other hand, its revenue dipped to $24.40 billion, falling below the analysts’ $24.69 billion forecast and $25.00 billion in the last quarter. Correspondingly, the data for quarter three achieved a 10.00% advancement year-over-year (YoY).
More specifically, the Client Solutions Group of Dell generated $12.13 billion, well beneath the $12.42 billion projections. At the same time, the current figure in the quarter marked a decrease of 1.20% (YoY).
Likewise, the corporation’s Infrastructure Solutions Group rendered $11.37 billion in revenue, underscoring a 34.00% YoY gain.
In line with this, the sales of personal computers (PCs) in the commercial segment climbed by 3.10% YoY to $10.14 billion. However, the PC sales in the consumer market segment slowed down by 18.00% YoY to $1.99 billion.
Meanwhile, Dell Chief Financial Officer Yvonne McGill indicated that the tech company pursues building on the momentum of artificial intelligence (AI).
PC Slump Drags Q4 Outlook of Dell
Based on reports, Dell reduced its expectations for its revenue in the upcoming fiscal fourth quarter. The below Wall Street forecast by the Texas-based corporation is prompted by the weaker demand for its traditional PC.
Simultaneously, the decision to cut the outlook was due to the tough competition it is facing with rival server makers in the industry.
Moreover, Dell is struggling to keep up amid the diminishing consumer spending induced by economic uncertainty.
In connection with this, analysts indicate that the whole PC market is in the process of transitioning towards on-device AI innovations.
