Dell Technologies Shares Slip 8.3% on Lower 2Q Profit

By Denny Jacob

Dell Technologies Inc. shares slipped 8.3% to $43.92 in after-hours trading after the company posted lower profit and revenue growth that came short of analysts' expectations as costs of revenue rose.

The computer equipment maker posted net income of $511 million, or 68 cents a share, for the second quarter ended July 29, compared with net income of $831 million, or 80 cents a share, a year earlier. Adjusted earnings were $1.68 a share, slightly above analysts' expectations of $1.64.

Revenue rose 9% to $26.43 billion from $24.19 billion, which the company attributed to continued growth across its infrastructure and client business units. Analysts polled by FactSet had expected $26.50 billion.

Total costs of revenue grew to $20.99 billion from $18.72 billion, a 12% year-over-year increase.

Dell delivered growth across its business units but observed more cautious customer behavior as the quarter progressed, said Co-Operating Chief Chuck Whitten.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

August 25, 2022 17:04 ET (21:04 GMT)

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