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- Dell Technologies (NYSE:DELL) went into the Thanksgiving holiday on an upbeat note as its shares rose almost 5%, Wednesday, following a quarterly report and outlook led by strong PC sales.
- Dell (DELL) ended the day at $57.30 a share on heavy volume of almost 13 million shares exchanged--or more than twice the 5.8 million shares that are traded in an average market day.
- The key to the enthusiasm for Dell (DELL) was the company's client solutions group revenue--client solutions being Dell's term for PCs for businesses and consumers--which rose by 35% from a year ago, to $16.5 billion. Analysts said that figure, which included commercial sales rising 40% and consumer revenue climbing 21% from a year ago, suggests that demand for PCs isn't slowing down.
- "Commercial revenue grew as businesses look to upgrade devices for the long-term in-office, remote and hybrid workforce," said Bank of America Securities analyst Wamsi Mohan, who added that consumer PC sales were boosted by growth in notebooks, and premium and gaming desktop computers.
- Mohan maintained his buy rating on Dell's stock, and raised his price target to $68 a share from $66.
- With PCs leading the way, Dell reported a quarterly profit of $2.37 a share, excluding one-time items, on revenue of $28.4 billion. The company also forecast fourth-quarter earnings of $1.85 to $2.05 a share, excluding one-time items, on revenue between $27 billion and $28 billion.
- Dell's (DELL) gains were mirrored by those of HP (NYSE:HPQ), which ended the day up by 10% as it's also reported quarterly results fueled by strong gains in its PC business.