Dell (NYSE: $DELL) Soars 30% on Q4 Revenue and Earnings Beat

Dell (NYSE: $DELL) is an American multinational tech company that designs and manufactures PCs and various computer-related products. Founded by Michael Dell in 1984, it has grown into one of the largest technology corporations in the world.

On February 29, 2024, Dell announced its fourth quarter and fiscal 2024 earnings, pushing the stock to an all-time high.  

Fourth Quarter Revenue Beats Estimates

Dell exceeded earnings forecasts, driven by a sharp increase in demand for its artificial intelligence servers. Its backlog climbed to $2.9 billion from $1.6 billion in just one quarter. Moreover, Dell Technologies’ shares surged by more than 15% in Thursday’s trading session.

Dell reports its fourth quarter revenue of $22.32 billion, beating analyst expectations of $22.16 billion. Furthermore, the earnings per share was $2.20, beating the estimated $1.73. However, the fourth-quarter revenue was down 11% year-over-year.

The company reported a $1.5 billion in operating, a 25% Y/Y rise, and a non-GAAP operating income of $2.1 billion, a decrease of 1% year-over-year. Dell reported $1.5 billion in free cash flow from operations for the quarter and $8.7 billion for the full year. 

The annual revenue totaled $88.4 billion, marking a 14% decline from fiscal year 2023. Full-year operating income stood at $5.2 billion, while non-GAAP operating income was $7.7 billion, reflecting decreases of 10% and 11% respectively compared to the previous year.

The Chief Financial Officer of Dell Technologies, Yovonne McGill, said, “We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23.”

He added, “We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23.”

Segment Performance 

Dell Infrastructure Solutions Group (ISG) recorded $9.3 billion in the fourth quarter, a decrease of 6% year over year], while Client Solutions Group (CSG) reported $11.7 billion in the same quarter, a 12% decline year-over-year.  

The Chief Operating Officer, Jeff Clark, said, “Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion.”

Dell Q1 Forecast

For the first quarter of 2025, Dell forecast revenue of $21 billion to $22 billion. The company expressed optimism regarding the momentum surrounding AI and expects to return to growth for fiscal 2025. 

However, it acknowledged that the current macroeconomic environment has led some customers to exercise caution regarding infrastructure expenses.  

Stock Update: $DELL

DELL is currently trading at $123.96, up 31.25% from its previous closing price of $94.66. The stock gained bullish momentum after the release of its fourth quarter and fiscal 2024 report, which surpassed analyst expectations. At the time of writing, the market cap is $85.558 billion, with a volume of 53,609,957.

Is DELL Stock A Buy?

Dell beat analyst expectations but fell short of last year’s revenue and EPS numbers. The company is focusing on working to build AI-optimized servers and expects major growth for fiscal 2025.Based on the projected growth in fiscal 2025, DELL could be a great addition to your portfolio. 

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