Shares of information technology and computer systems company Dell Technologies (NYSE: DELL) took a hit on Friday, falling as much as 14%. I own 3 Dell products and have recommended one to my gf and my mom. By Joseph Woelfel. 1. Jul 17, 2020 4:16 PM EDT. Dell stock rose 0.02% on Thursday and ended the day at $45.58.
That led to adjusted net income of $1.1 billion, or $1.34 per share, also well ahead of the $1.01 per share in adjusted profits that analysts were expecting.
These are all strong numbers, and profitability is ultimately what matters in the end for shareholders.From Feb. 1 to Nov. 1, the company's reduced its total long-term debt by $4.5 billion and it now stands at $44.7 billion. Adjusted earnings per share of $1.75 were also well above expectations of $1.59.
The decrease in the forecast is disappointing, but what matters is how Dell actually performs, and its fiscal Q4 could still turn out solid.
Investors should, therefore, be excited about Dell's prospects for 2020 if Intel can finally put its production issues behind it and start meeting the market's demand for its PC chips.Another positive takeaway from the Q3 results was that Dell has been trimming debt from its balance sheet.
2 commercial PC maker, with market share of 26%, citing figures from market researcher IDC.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Dell is focusing on reducing core debt by $5.5 billion this fiscal year, and warned that macroeconomic weakness may impact IT spending this year.Revenue in the first quarter was $21.9 billion, crushing the consensus estimate of $20.8 billion in sales.
Its operating profit of $2.44 billion came in higher than estimates of $2.32 billion. Absent the chip shortage, its results would likely have been even stronger. Why Dell Stock Soared Today.
And while the start of that period is still several months away, it's an important reminder that this is not a long-term problem for Dell. Evan Niu, CFA (TMFNewCow) May 29, 2020 at 1:23PM Author Bio. Dell says it is now the No.
Image source: Dell.Stock Advisor launched in February of 2002.
"Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice," COO Jeff Clarke commented in a statement. MARKETS. There is no way that you could get an equivalent Windows tablet product from anywhere. Evan is a senior technology specialist at The Motley Fool. At this closing price, the company’s market cap is $33.7 billion. Why Dell Stock Jumped Today The PC maker reported first-quarter results.
In Q3, the company performed well despite conditions that weren't ideal. However, there are three reasons why investors should still be bullish on the stock. Lower leverage makes a company more attractive to risk-averse investors, and to banks as well, should it need more liquidity in the future.
MotleyFool 10d: Dell leaps 17% after confirming potential spin-off of software firm VMware, Bank of America raises price target.
As of 2:30 p.m. EDT, the stock was down 10.2%.
Dell's guidance looks worse than it is. Dell's certified refurbished products are very cheap, AND come with a full factory warranty. If your Dell is slow while browsing the Internet, it could be the Internet browser you use is too heavy — loaded with too … Coronavirus, Netflix, Boeing 747 - 5 Things You Must Know Friday. Dow Ends Down as Consumer Sentiment Slumps - Netflix Tumbles.
For example, I picked up a Dell Venue 11 Pro 7130 with an Intel i3 and a 128gb storage for $400.
Stock returns. Dell XPS 13. Why is My Dell Laptop so Slow? It's also important from a governance standpoint, as it shows investors that management is putting its cash in the right places and not being wasteful.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.However, there are three reasons why investors should still be bullish on the stock.The chip issue, has, unfortunately, been an issue for some time now, and given that roughly half of Dell's revenue comes from PC sales, the impact on the company's financials has been notable.The good news for investors is that Dell CFO Tom Sweet expects that the chip issue will begin to improve in the second half of its next fiscal year. Returns as of 07/29/2020.What's encouraging is that even with those challenges, Dell still had a good quarter, which was reflected further down its income statement.
The Client Solutions Group saw sales increase, but the Infrastructure Solutions Group declined as the enterprise shifted spending toward remote work.
The first is that having fewer financial obligations on its books gives an organization more flexibility. And gross margin of 34% was also stronger than the 32.8% that analysts were forecasting. There are a number of possible causes out there, and the real reason can vary from case to case.
It paid down $1.1 billion in gross debt during the quarter, and $3.5 billion year-to-date, with plans to get that number to $5 billion before the end of fiscal 2020.Stock Advisor launched in February of 2002.