Dell just posted its Q1 results, and earnings were ahead of expectations.The stock jumped 4% almost immediately after trading resumed at 4:20 pm ET. It’s now up 5% after hours.
Non-GAAP EPS was $0.55, slightly ahead of consensus estimates of $0.43, and up 83% from last year; GAAP EPS was $0.49, up 188%
Revenue came in at $15.02 billion, which was shy of consensus estimates of $15.40 billion, although ahead of low-ball predictions of $14.85 billion. Overall, revenue was up only 1% from last year.
Like HP, which reported its earnings earlier today, Dell saw weakness in the consumer market: consumer revenue came in at $3 billion, down 7% from last year. That’s not as bad as HP’s figure — down 23%. Public sector sales also dropped 2%.
Dell did better in other segments: large enterprise revenue was $4.5 billion, up 5%, and small and medium business revenue was $3.8 billion, up 7% from last year.
But the big story was profitability: the large enterprise showed record operating profit, and the small and medium segment had its highest net profit in two years.
Dell credited “a higher-value product portfolio, good cost management, better sales execution and a significantly improved supply chain” for helping its income grow faster than revenue.
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