A Dell sets Wall Street on fire

Stefan Mileschin · 2nd September 2019, 13:26

Surprising desktop figures

Dell beat the cocaine nose jobs of Wall Street profit estimates thanks to a surprising higher demand for desktops, as well as a focus on more profitable contracts within its server unit in China.

The PC maker is seeing declining demand across industries in China amid an escalating Sino-US trade war, but the company’s focus on selective large deals in the Asian country helped it earn “higher-margin dollars” in a slow market.

That helped the company forecast full-year adjusted earnings per share in a range of $6.95 to $7.40, above analysts’ estimate of $6.42.

The company said it was working to raise prices of products including desktops and workstations to offset the impact of additional five percent tariffs from 1 Sept on Chinese goods.

“Our costs are going to go up and we will have to move price”, Chief Operating Officer Jeffrey Clarke said on a conference call with analysts.

Sales fell seven percent in the company’s servers business to $8.6 billion, but operating income rose four percent to $1.05 billion.

Dell said server orders outside China were up a percent in the second quarter and the company expects to gain market share in the current quarter in North America, and Europe, the Middle East and Africa.

https://fudzilla.com/news/pc-hardwar...street-on-fire

2nd September 2019, 13:26	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,769	A Dell sets Wall Street on fire Surprising desktop figures Dell beat the cocaine nose jobs of Wall Street profit estimates thanks to a surprising higher demand for desktops, as well as a focus on more profitable contracts within its server unit in China. The PC maker is seeing declining demand across industries in China amid an escalating Sino-US trade war, but the company’s focus on selective large deals in the Asian country helped it earn “higher-margin dollars” in a slow market. That helped the company forecast full-year adjusted earnings per share in a range of $6.95 to $7.40, above analysts’ estimate of $6.42. The company said it was working to raise prices of products including desktops and workstations to offset the impact of additional five percent tariffs from 1 Sept on Chinese goods. “Our costs are going to go up and we will have to move price”, Chief Operating Officer Jeffrey Clarke said on a conference call with analysts. Sales fell seven percent in the company’s servers business to $8.6 billion, but operating income rose four percent to $1.05 billion. Dell said server orders outside China were up a percent in the second quarter and the company expects to gain market share in the current quarter in North America, and Europe, the Middle East and Africa. https://fudzilla.com/news/pc-hardwar...street-on-fire

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