Why Dell Technologies Inc (NYSE: DELL) stock is falling

Free $100 Forex No-Deposit Bonus

Dell Technologies Inc (NYSE: DELL) stock fell 3.40% after the company posted mixed results for the third quarter of FY 20. DELL in the third quarter of FY 20 has reported the adjusted earnings per share of $1.75. The company had reported the adjusted revenue growth of 1 percent to $22.84 billion in the third quarter of FY 20, missing the analysts’ estimates for revenue of $23.04 billion.

DELL has reported 21% increase in the consolidated net income to $1.4 billion. Adjusted EBITDA was $2.9 billion or 12.5% of revenue and $11.6 billion on a trailing 12 month basis. The company has generated $1.6 billion of adjusted free cash flow in third quarter due to strong profitability and working capital discipline.

Moreover, the company’s storage business grew 7% to $4.1 billion and the company saw a strong Q3 demand in data protection and hyper converged with VxRail orders up 82%. The company expect to gain storage share in North America in calendar Q3. Excluding Greater China, the Q3 server order revenue had declined 16% to $4.2 billion. Infrastructure Solutions Group revenue fell 6% to $8.4 billion. The deferred revenue balance has risen by 17% to $25.9 billion on the back of services and software businesses adding revenue and cash flow stability. Gross margin has expanded by 11% to $7.8 billion and it was 33.9% of revenue up 300 basis points due to lower component cost and pricing discipline. Operating expenses were up 8% to $5.3 billion, due in part to investments the company has made in sales coverage to broaden solutions sales capabilities and expand buyer base. Operating income was up 18% to $2.4 billion or 10.7% of revenue.

Additionally, the company has repaid approximately $1.1 billion of gross debt in the third quarter and $3.5 billion year-to-date. And the company is in position to repay approximately $5 billion of gross debt in total in fiscal year 2020. DELL has ended the quarter with $9.4 billion of cash and investments.

The company now expect fiscal 2020 non-GAAP revenue range to be $91.8 billion to $92.5 billion. DELL now expect non-GAAP operating income range to be now $10 billion to $10.2 billion and the non-GAAP EPS guidance range to now $7.25 to $7.40 for FY 20.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.