How Dell Managed to Pull Off a Win in Q2 Despite Huge Hurdles

By Chris Lange Published Aug 28, 9:49AM EDT

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How Dell Managed to Pull Off a Win in Q2 Despite Huge Hurdles — © Justin Sullivan / Getty Images

Dell Technologies Inc. (NYSE: DELL | DELL Price Prediction) reported its most recent quarterly results after the markets closed on Thursday. For the second quarter, the firm said that it had $1.92 in earnings per share (EPS) and $22.8 billion in revenue. Analysts were calling for $1.39 in EPS and revenue of $22.52 billion, and the same period of last year reportedly had EPS of $2.15 on $23.45 billion in revenue.

During the second quarter, the company saw total deferred revenue increase 14% year over year to $28.8 billion. Recurring revenue, which includes deferred revenue amortization, utility and as-a-service delivered as part of Dell Technologies on Demand, was roughly $6 billion for the quarter, an increase of 15%.

At the same time, the Infrastructure Solutions Group revenue decreased 5% year over year to $8.2 billion. Storage revenue was down 4% at $4.0 billion, while servers and networking decreased 5% to $4.2 billion. Operating income for the segment was $973 million.

The Client Solutions Group revenue decreased by 5% to $11.2 billion. Commercial revenue shrank 11% to $8.0 billion, and Consumer revenue increased 18% to $3.2 billion. Operating income was $715 million.

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VMware revenue grew 10% to $2.9 billion, driven by broad-based strength across a diverse product portfolio. Operating income for the second quarter was $894 million.

The company offered no guidance in the filing. However, the consensus forecast is $1.29 in EPS and $22.05 billion in revenue for the fiscal third quarter.

Management noted that during the second quarter, the company saw strength in the government sector and in education, with orders up 16% and 24%, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning.

Dell stock hit a new 52-week high of $67.33 a share early Friday. The consensus price target was $62.89 on last look.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.