What happened
The PC market might be in a long-tail slump, but that didn't seem overly concerning to Dell Technologies (DELL -0.36%) investors on Thursday. Following the release of the storied computer hardware retailer's latest quarterly results Thursday, market players bid up the stock by 1.5%. That contrasted favorably with the 0.6% decline of the S&P 500 index.
So what
Dell reported its first-quarter results of fiscal 2024, revealing that it earned revenue of $20.9 billion. That was down 20% on a year-over-year basis, but that topped the average analyst estimate of $20.3 billion.
The dynamic was similar with non-GAAP (adjusted) net income, which tumbled by 33% to $963 million ($1.31 per share) but still beat the prognosticator consensus ($0.86).
Dell's co-COO Chuck Whitten explained that "We executed well against a challenging economic backdrop. We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors."
Now what
But Dell is sailing in rough waters. It has been burdened by the supply issues suffered by many tech businesses, and it continues to struggle in a world increasingly eager for devices such as smartphones and tablets. During the quarter, both of the company's two divisions experienced double-digit declines in both revenue and operating income.
More tumbles might be in store. On average, analysts tracking Dell stock expect the company to post a 15% drop in revenue for full-year 2024 against the 2023 figure. As for profitability, those pundits are modeling a vertigo-inducing 30% tumble for per-share earnings.
