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shares Dale Technologies It jumped more than 15% during extended trading Thursday after the company released fourth-quarter results that beat analysts' estimates and showed strong demand for its artificial intelligence servers.
Here's how the company did:
EPS: $2.20 adjusted vs. $1.73 expected by LSEG, formerly known as Refinitiv Revenue: $22.32 billion vs. $22.16 billion expected by LSEG
Dell's revenue for the fourth quarter of fiscal 2024 fell 11% from $25.04 billion in the same quarter last year. The company reported net income of $1.16 billion, up 89% from the $614 million it reported in the same period last year.
Chief Financial Officer Yvonne McGill said in a statement that the company is increasing its annual dividend by 20% to $1.78 per share, which she called “a testament to our confidence in the business.”
Dell's Infrastructure Solutions Group (ISG) reported revenue of $9.3 billion for the quarter, down 6% year over year but up 10% from Q3. Server and networking revenue made up the bulk of that, with $4.9 billion in revenue driven by “AI-optimized servers.” Storage revenue was $4.5 billion.
The company's Customer Solutions Group (CSG) reported $11.7 billion for the quarter, down 12% year over year. This includes $9.6 billion in business customer revenue, which is down 11% since last year's fourth quarter, and $2.2 billion in consumer revenue, down 19% year over year.
“Our strong AI-powered server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, as we exit our fiscal year at $2.9 billion,” Jeff Clark, chief operating officer, said in the statement.
For the first quarter, Dell said during its quarterly call with investors that it expects to generate revenue between $21 billion and $22 billion.
The company said it is encouraged by the momentum around artificial intelligence, and that it expects a return to growth for fiscal 2025. However, the company noted that the macroeconomic environment is making some clients cautious about infrastructure costs.
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