Dell shares fall on mixed first-quarter earnings report

Dell Technologies (DELL) late Thursday met Wall Street’s earnings target for its fiscal first quarter, showing stronger-than-expected sales. However, Dell shares fell in extended trading.

The Round Rock, Texas-based company earned an adjusted $1.27 per share on sales of $22.24 billion in the quarter ended May 3. Analysts polled by FactSet expected earnings of $1.27 per share on sales of $21.69 billion. In the same period a year earlier, Dell earned an adjusted $1.31 per share on sales of $20.92 billion.

With its first quarter results, Dell returned to sales growth after six consecutive quarters of year-over-year declines.

Earnings report details coming soon.

Dell stock retreats from record high

In today’s trading hours, Dell shares fell more than 13% to 146.83. During Thursday’s regular session, Dell shares fell 5.2% to close at 169.91.

Dell shares hit a record high of 179.70 on Wednesday after BofA Securities raised its price target. BofA analyst Wamsi Mohan said Dell is benefiting from expanding its data centers for generative artificial intelligence applications.

The company introduced new AI-enabled PCs, AI servers, all-flash storage and networking architectures at the Dell Technologies World conference from May 20-23. It also announced expanded cooperation with the AI chipmaker Nvidia (NVDA).

HP beats fiscal second quarter estimates

Late Wednesday, industry colleague HP (HPQ) beat analyst estimates for the fiscal second quarter ending April 30. On this basis, it also presented the above forecasts for adjusted earnings for the full financial year.

The personal computer and printer maker earned an adjusted 82 cents per share on sales of $12.8 billion in its fiscal second quarter. Analysts expected earnings of 81 cents per share on sales of $12.61 billion. Year-over-year, HP’s profits rose 4% while sales fell almost 1%.

HP has now seen eight straight quarters of declining sales.

HP shares broke out of a 46-week consolidation on Thursday with a buy point of 33.90, according to IBD MarketSurge charts. It ended the regular session with an increase of 17% to 38.36.

According to the IBD Stock Checkup, HP ranks fourth out of 15 companies in the IBD group of computer equipment and peripherals manufacturers. Meanwhile, Dell shares rank third in the group.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more articles on consumer technology, software and semiconductor stocks.

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