Shares of Dell Technologies (DELL 0.58%) have jumped today, up by 7% as of 12:30 p.m. EDT, after the PC maker announced first-quarter earnings. Demand for PCs remains healthy, as COVID-19 has driven many companies to invest in remote working setups.
Revenue in the first quarter was $21.9 billion, crushing the consensus estimate of $20.8 billion in sales. That led to adjusted net income of $1.1 billion, or $1.34 per share, also well ahead of the $1.01 per share in adjusted profits that analysts were expecting. The Client Solutions Group saw sales increase, but the Infrastructure Solutions Group declined as the enterprise shifted spending toward remote work.
"Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice," COO Jeff Clarke commented in a statement. Dell says it is now the No. 2 commercial PC maker, with market share of 26%, citing figures from market researcher IDC.
Dell had previously withdrawn its guidance for this fiscal year due to ongoing macroeconomic risks related to the COVID-19 pandemic. On the conference call with analysts, CFO Tom Sweet offered some commentary around outlook. Revenue in the second quarter is expected to be "seasonally lower than prior years" following strong demand in February and March. That suggests that sales were pulled forward as people transitioned to remote working environments.
Dell is focusing on reducing core debt by $5.5 billion this fiscal year, and warned that macroeconomic weakness may impact IT spending this year.