Dell Warns Of Cautious Customer Behavior And Even Lower Guidance

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Dell Warns Of Cautious Customer Behavior And Even Lower Guidance

Dell Warns Of Cautious Customer Behavior And Even Lower Guidance

The quarterly earnings of Dell Technologies were higher than the estimates of Wall Street analysts. However, it also warned of cautious custom behavior as the economic environment is getting more challenging.

Due to the difficult landscape, Dell has also lowed its outlook for the full year - As a result, the Dell Technologies stock was 5% lower during the extended trading session./p>

The EPS of Dell during the 2nd quarter was around $1.68, which means that it is now trading towards the upper part of its range ($1.55 - $1.70). As for the revenue of Dell technologies, the number was $26.4 billion, which is an increase of 9% from the last year. The revenue forecast for Dell was around $26.1 billion - $27.1 billion, and the operating income was reported at $1.3 billion./p>

Dell Is Performing Well In Challenging Environment

According to the Co-CEO of Dell, the company has performed well despite the challenging environment in the economy and the sector. Revenue of around $26.4 billion was a good number for the 2nd quarter and is in line with the company's forecasts./p>

He also expressed that they are following the long-term strategy of growing the core products. However, the company is also providing innovations for potential customers and taking advantage of the data era opportunities./p>

Client Solutions Group's revenue was at $15.5 billion and is involved in the selling of PCs and other hardware. The commercial revenue of this group increased by 15% and was at $12.1 billion. On the other hand, the consumer revenue was only $3.3 billion (A drop of 9%)./p>

Considering the weakness witnessed in consumer spending and related industries such as Intel, these financial numbers are well in line. In fact, it has performed better than other companies, such as Nvidia Corp, which is a sign of strength./p>

Through the sale of computer servers, IT hardware, and storage systems, the company made sales of $9.5 billion (an increase of 12%)./p>

Overall, the company performed well, but the difficult conditions of the sector and the economy may put drag on growth./p>

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