(AOF) – The Dell computer group presented better than expected results thanks to strong demand for PCs from businesses. In the first quarter, which ended in late April, Dell generated net income from continuing operations up 62% to $1.07 billion, or earnings per share of $1.37. Adjusted for exceptional items, earnings per share came out at $1.84, where the market was only targeting $1.39. Revenue rose 16% to $26.1 billion and exceeded expectations: $25 billion.
Sales of computers to businesses and administration jumped 22% to 12 billion dollars and those of PCs to the general public, 3% to 3.6 billion dollars. Revenues from servers and network equipment jumped 22% to $5 billion and those from storage products jumped 9% to $4.2 billion.
These good results are accompanied by favorable prospects.
The IT group anticipates for the current quarter revenues between 26.1 and 27.1 billion dollars, compared with the forecast of Wall Street of 25.5 billion dollars. Adjusted earnings per share are expected between $1.55 and $1.70, while analysts are only targeting $1.45 on average.
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Computer manufacturers: a decline in sales that should continue in 2022 –
The downward trend in computer sales observed since the second half of 2021 should continue and lead to an annual drop in the number of PCs sold in 2022, except in the professional segment. This niche is doing well because it benefits from the boom in telework, which requires companies to acquire fleets of laptops. IDC then predicts that volume sales will benefit from an average annual increase of 3.3% until 2025. It should mainly come from purchases of notebooks.