Dell Technologies (DELL) Thursday reported a surge in profit for the first quarter as revenues jumped 12%, driven largely by continued strong demand for “Work From Home” products like desktops and notebooks. Both earnings and revenues for the quarter trounced Wall Street analysts’ estimates.
Round Rock, Texas-based Dell’s first-quarter profit surged to $938 million or $1.13 per share, up from $182 million or $0.19 per share last year.
Adjusted earnings were $1.82 billion or $2.13 per share for the period, up from $1.14 billion or $1.34 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.61 per share. Analysts’ estimates typically exclude special items.
Revenue for the quarter grew 12% to $24.49 billion from $21.90 billion last year. Analysts had a consensus revenue estimate of $23.40 billion.
The company said its revenues were driven by growth across Infrastructure Solutions, Client Solutions and VMware business units. Client Solutions Group revenues grew to 20% to a record $13.3 billion, with consumer online business orders up 58. Infrastructure Solutions Group revenue rose 5% to $7.9 billion, driven by demand for cloud solutions. VMware revenue was $3.0 billion for the first quarter, up 9% driven by broad-based strength across a diverse product portfolio.
“There has been a substantial acceleration in digital transformation across the globe and you can see it in our results with record first quarter revenue of $24.5 billion. Now more than ever, customers are turning to Dell Technologies to help build their digital future,” said Jeff Clarke, chief operating officer and vice chairman, Dell Technologies.
DELL closed Thursday’s trading at $99.70, up $0.04 or 0.04%, on the Nasdaq. The stock further gained $1.30 or 1.30% in the after-hours trading.
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