Dell Technologies Inc (DELL)

Shares of Dell Technologies, Inc. (DELL) dropped by 5.19% from $75.87 to $71.93 in the trading on Friday, December 1, 2023. The reason why DELL is down today is due to the revenue miss and outlook, despite the earnings beat:

• Earnings Beat: Dell Technologies reported non-GAAP earnings of $1.88 per share for the third quarter of fiscal 2024, surpassing the Zacks Consensus Estimate by 27.89%. However, the bottom line declined by 18% compared to the previous year.
• Revenue Miss: On a non-GAAP basis, the company's revenues for the quarter decreased by 10% year-over-year, totaling $22.25 billion. This figure missed the consensus estimate by 2.91%. Recurring revenues increased by 4% year-over-year to $5.6 billion. However, product revenues decreased by 14% year-over-year to $16.23 billion due to increased pricing pressure in the reported quarter. Services revenues rose by 4% year-over-year to $6.02 billion.
• Operating Metrics: Non-GAAP gross profit decreased by 10% year-over-year to $5.28 billion, with a gross margin of 23.7%. Operating expenses declined by 15% year-over-year to $3.27 billion, while research and development expenses increased by 4% year-over-year to $677 million. Non-GAAP operating expenses decreased by 5% year-over-year to $3.31 billion.
• Guidance: For the fourth quarter of fiscal 2024, Dell expects revenues between $21.5 billion and $22.5 billion. ISG revenues are expected to increase mid-single digits, while CSG revenues are projected to decrease low-single digits sequentially. Earnings are expected to be $1.70 per share (+/- 10 cents). For fiscal 2024, earnings are expected to be $6.63 per share (+/- 10 cents).