Dell’s Q1 revenues beat analysts’ estimates

Dell Technologies Inc reported a rise in its quarterly revenues, which beat analysts’ estimates, on the back of a rise in demand for its workstations from companies which saw employees working from home due to the coronavirus outbreak.

With the news reaching the market, Dell’s shares rose by 8.3% to $49.38 in extended trading.

Revenues from client solutions group, which accounts for half of the company’s revenues and includes notebooks, laptops, desktop PCs, and tablets, rose by 2% to $11.1 billion in Dell’s first fiscal quarter.

Commercial notebooks reported a growth in double-digit units while its mobile workstations posted a high-single-digit revenue growth, said Dell.

“In Q1, we saw orders with banking and financial services, government, healthcare and life sciences customers up 15% to 20%,” said Jeff Clarke, Dell’s Chief Operating Officer in a statement.

However, weak demand from China weighed on Dell’s data center business, with revenues falling by 8% to $7.57 billion in the three months ended May 1.

Dell reported a marginal fall in total revenues of $21.90 billion, which beat analysts’ estimates of $20.81 billion, according to IBES data from Refinitiv.

Net income attributable to the company fell to $143 million, from $293 million a year earlier.

In March, Dell had changed its financial year 2021 forecast citing rising uncertainty stemming from coronavirus outbreak.

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