Dell Technologies Revenue Declines But Tops Prior Guidance — Earnings Review

By Denny Jacob

Dell Technologies Inc. on Thursday posted a decline in revenue in the latest quarter, but it came in above the company’s prior guidance. Here’s what you need to know.
ADJUSTED EARNINGS: The tech company posted adjusted earnings of $1.80 a share for the fourth quarter ended Feb. 3. Analysts polled by FactSet expected adjusted earnings per share of $1.64.

REVENUE: The Round Rock, Texas-based company recorded revenue of $25.04 billion compared to $27.99 billion a year earlier. Analysts polled by FactSet expected $23.42 billion in revenue.
NET INCOME: Dell logged net income of $614 million, up from $2 million in the year-ago period. Analysts polled by FactSet expected $1.06 billion.
WHAT WE WATCHED:
— DEMAND: Dell’s revenue declined around 11% but came in above the company’s prior guidance set between $23 billion to $24 billion. The results signal that consumer demand for electronics is continuing to soften amid economic uncertainty. Rival HP Inc. on Tuesday posted a decline in revenue as consumer and commercial spending slowed, which was reflected in the performance of its personal computer business.
— COMMENTARY: “The long-term trends are in our favor, as data increases exponentially and we continue to help customers navigate the complexities of hybrid work, multicloud and edge,” said Co-Chief Operating Officer Chuck Whitten.
— DIVIDEND: Dell said it would increase its annual cash dividend by 12% to $1.48 a share, up from $1.32. It said 37 cents per share for the first quarterly distribution is payable on May 5 to shareholders of record as of April 25.
Write to Denny Jacob at denny.jacob@wsj.com