Dell Technologies Inc. shares rose higher on Thursday as the computer company’s earnings and adjusted earnings exceeded Wall Street expectations. Dell DELL,
shares traded 1.8% after hours after closing the regular session at $ 62.43, up about 0.5%. The company reported second-quarter net income of $ 1.1 billion, or $ 1.37 per share, compared to $ 4.2 billion, or $ 4.47 a share, in the same period last year. Adjusted earnings were $ 1.92 per share, adjusted for purchase accounting. Revenue fell to $ 22.7 billion from $ 23.4 billion a year ago, but Round Rock, a Texas-based company, found that consumer sales rose 18% to $ 3.2 billion, citing to double-digit growth across notebooks for consumers and gaming systems. Chief Financial Officer Tom Sweet attributed the gain to demand for remote and learning work solutions from education, government and consumer clients. Analysts surveyed by FactSet had earnings of $ 1.38 per share for $ 22.48 billion.
Meanwhile, cloud firm VMware Inc. has VMW,
in which Dell holds an 81% stake, saw its shares grow in extended trading after reporting what CEO Pat Gelsinger called solid results amid pandemic-related “uncertain times” on the strength of an increase in subscriptions and SaaS licensing revenue. Shares of the company based in Palo Alto, California, rose as much as 3% after hours, after closing less than 0.5% to $ 142.90. VMware reported second-quarter net income of $ 447 million, or $ 1.06 per share, compared to $ 5 billion, or $ 12.47 a share, in the period from the year before a recorded tax benefit include. Adjusted earnings were $ 1.81 per share, adjusted for share-based compensation. Revenue rose to $ 2.88 billion from $ 2.63 billion last year. Analysts surveyed by FactSet had earnings of $ 1.45 per share for $ 2.8 billion.
Dell also mentioned that it is investigating a potential spin-off of VMware.
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