The US manufacturer Dell benefits from its repositioning on the PC market, while the demand for computers from companies is increasing. As a result, the company publishes solid results for the second quarter.
In financial difficulties a few years ago, Texan Dell is taking full advantage of the current good level of demand in the computer market, so that the company has just revised upward its objectives for the current fiscal year 2020 . During the second quarter ended June 31, Dell saw its revenue increase by 2% ($ 23.4 billion) and earnings reach $ 2.15 per share (analysts expected $ 1.50). Obviously, Wall Street has responded favorably to these good indicators, the title Dell having jumped 9% in post-closing deals (while it had lost 4.3% since the beginning of the year).
The minimum profitability target for the full year thus increased from $ 6.05 to $ 6.95, with annual sales expected to be in the range of $ 92.7 to $ 94.2 billion. The bet made by Michael Dell to reorient his company to make it very competitive in the PC market is paying, while its server-side results are down (- 6.6% to $ 8.6 billion). Responding to the fleet renewal needs of companies with an adapted offering, Dell saw its PC sales rise 5.8% over the quarter compared to last year's figures, reaching $ 11.7 billion.
The purchase of VMware is also paying off, bringing in $ 2.5 billion in revenue in the quarter and helping the company to assert itself in the market. software. On the fiscal year 2020, Dell also expects to reduce its debt by $ 5 billion, while the company has generated $ 3.3 billion of positive cash on the second quarter.
Tom Sweet, chief financial officer of Dell, still retains a certain mistrust, explaining that "macroeconomic uncertainties" weigh on the market. He cites the global economic environment (probably referring to the trade war between Beijing and Washington), the exit of the United Kingdom from the European Union, the growth of European GDP … So many external parameters which, in his opinion, could encourage companies to remain attentive and minimize their investments in equipment.