Market News

Dell Dips 9% as Q4 Earnings Miss Estimates

Shares of Dell Technologies (DELL) fell 9% in the extended trading session on Thursday after the American multinational technology company reported mixed fourth-quarter Fiscal Year 2022 results.

Q4 Performance

The company reported adjusted earnings of $1.72 per share, which lagged the consensus estimate of $1.94 per share and declined 2% from adjusted earnings of $1.76 per share reported in the same quarter last year. 

Total net revenue of $28 billion grew 16% year-over-year and topped analysts’ expectations of $27.5 billion. The upside was supported by growth in all business units, along with strong demand across commercial PCs, servers and storage. 

Adjusted EBITDA for the fourth quarter stood at $2.69 billion, up 3% year-over-year. Notably, at the end of the quarter, Dell had remaining performance obligations of $42 billion, up 20% year-over-year, along with deferred revenue of $27.6 billion and cash and investments of $11.3 billion.

Segment-wise, Client Solutions Group recorded revenues of $17.3 billion, up 26% year-over-year. Additionally, revenues for Infrastructure Solutions Group came in at $9.2 billion, up 3% year-over-year.


Alongside earnings, Dell announced the initiation of a quarterly common stock of $0.33 per share. The dividend will be payable on April 29 to stockholders of record as of April 20. The company anticipates aggregate fiscal 2023 dividends of about $1 billion.

The CFO of Dell, Tom Sweet, said, “We remain focused on executing our strategy to consolidate and modernize our core and build new growth engines that enable our customers’ multi-cloud future while delivering shareholder value.”

Wall Street’s Take  

Overall, the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average Dell price target of $69.50 implies 24.5% upside potential. 

Blogger Opinion

TipRanks data shows that financial blogger opinions are 91% Bullish on DELL, compared to a sector average of 69%.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Etsy Rises 20.6% as Q4 Results Surpass Expectations
AMD’s Board Approves $8B Share Buyback Plan Drops 28% Despite Beating Q4 Estimates

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More