Dell Technologies topped Wall Street estimates for quarterly revenue last night in the computer maker's first earnings report since a return to public markets.
The company also forecast annual revenue above estimates, lifted by demand for its servers and network devices.
Dell, one of the top players in the PC market, returned to public markets on December 28 after it bought back interest tied to the performance of software maker VMware, and shares have risen more than 22% since then.
Revenue in its Infrastructure Solutions Group, which houses its servers and network device business, rose 10% to $9.9 billion. Servers and networking revenue rose 14% to $5.3 billion.
The company said that revenues at its Client Solutions Group segment rose 4% to $10.9 billion. The unit holds its desktop PCs, notebooks and tablets, as well as branded peripherals business.
Excluding some items, Dell expects full-year 2020 revenue between $93 billion and $96 billion, mostly above analysts' estimate of $94.11 billion, according to IBES data from Refinitiv.
Its expectations for annual adjusted earnings per share between $6.05 and $6.70 falls below Wall Street estimates of $6.81.
Dell did not report earnings per share for fiscal 2019 due to certain transactions.
Dell's chief financial officer Tom Sweet referenced the dynamic macroeconomic environment in an interview to Reuters.
"I don't think full-year 2020 will be quite as strong from a year-over-year revenue growth perspective, but I do think that we will continue to improve profitability over the course of the year," he said.
Excluding the impact of purchase accounting of $167m, the company posted total revenue of $24 billion, above estimates of $23.83 billion.
For the fourth quarter ended February 1, net loss attributable to Dell jumped nearly three-fold to $299m. Operating expenses surged 13.7% to $6.78 billion.
Competitor VMware beat fourth-quarter revenue and profit estimates on strong demand for its software to boost cloud computing efficiency, sending its shares up 3%.
