Dell Technologies Inc (DELL.N) posted a quarterly profit miss on Thursday and said it expected PC backlog to balloon in the first quarter owing to supply chain difficulties, sending its shares down 7% in extended trade.
Over the past year, the corporation raked in billions of dollars in sales thanks to a pandemic-fueled surge in PC sales. Dell, on the other hand, is feeling the effects of a global chip shortage and supply chain challenges, as lengthier lead times and components, shortages have resulted in increased component and freight costs.
According to IBES data from Refinitiv, the business earned $1.72 per share on an adjusted basis, which was below Wall Street’s estimate of $1.9.
The stock of Dell, based in Texas, fell 1% on Thursday. They were trading at $51.89 in extended trading.
“As we invest in the business, we expect OPEX (operating expense) as a percentage of revenue to be slightly higher than FY22,” finance head Tom Sweet said.
Nonetheless, revenue increased by 16 percent to $27.99 billion in the fourth quarter, exceeding analysts’ expectations, and revenue and profit forecasts for the first quarter were higher than expected.
Dell’s client solutions group – which comprises desktop PCs, laptops, and tablets – saw a quarter increase in revenue in the three months ending Jan. 28.
In November, the business completed the spin-off of VMware Inc (VMW.N), its cloud computing arm, in which it held an 81 percent share. VMWare would become a stand-alone public company, according to Dell.
