Dell Technologies Inc (NYSE: DELL) stock rose over 0.09% on May 28th, 2021 in the pre-market session (Source: Google finance) after the company posted better than expected results for the first quarter of FY 22. Client Solutions Group had delivered revenue for the first quarter of $13.3 billion, up 20% and the segment’s operating income was a record $1.1 billion, up 84%.
For the quarter, Consumer revenue was $3.5 billion, up 42%, while commercial client revenue was $9.8 billion, up 14%. Consumer online business orders up 58%, with XPS notebook orders up 21% and Alienware notebooks orders up 76%. There was double-digit orders growth in Latitude, Precision systems, and Commercial Chromebooks. Infrastructure Solutions Group revenue for the first quarter was $7.9 billion, which is up 5% as customers accelerate their IT investments with focus on hybrid cloud solutions. Servers and networking revenue was $4.1 billion, up 9%, and storage revenue was $3.8 billion for the period. The segment’s operating income was $788 million for the first quarter, up 8%, or approximately 10% of Infrastructure Solutions Group revenue. VMware revenue was $3 billion for the first quarter, up 9% driven by broad-based strength across a diverse product portfolio. Its operating income for the quarter was $841 million, or 28.1% of VMware revenue. Dell Technologies ended the first quarter with remaining performance obligations of $42 billion and cash and investments of $15.9 billion. The company has paid down $2.5 billion in debt year-to-date and revised its debt paydown target for its fiscal year 2022 to at least $16.0 billion upon completion of its announced spin-off of VMware.
DELL in the first quarter of FY 22 has reported the adjusted earnings per share of $2.13, beating the analysts’ estimates for the adjusted earnings per share of $1.55, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 12 percent to $24.5 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue by 5.02%. The company has delivered first quarter non-GAAP operating income of $2.7 billion, up 26%.
Additionally, the company has expanded the Dell EMC PowerProtect Cyber Recovery solution with multi-cloud options to help customers build a cyber resilient strategy as ransomware threats continue. The company has launched Dell EMC PowerStore software advancements that improve workload performance by up to 25%, building on its novel container-based architecture and supporting the new PowerStore 500.