Dell Technologies (DELL) has reported mixed fiscal third-quarter financial results but offered bullish forward guidance driven by artificial intelligence (A.I.).
The maker of personal computers (PCs) and A.I. servers posted earnings per share (EPS) of $2.59 U.S., which was ahead of the $2.47 U.S. expected on Wall Street.
But revenue in the quarter totaled $27.01 billion U.S., which was below the $27.13 billion U.S. consensus estimate of analysts. Sales were up 11% from a year earlier.
Looking ahead, Dell said it that it now expects $31.5 billion U.S. of sales in the current fourth quarter. That’s ahead of the $27.59 billion U.S. that analysts had penciled in for the company.
Earnings in the current quarter are estimated at $3.50 U.S. per share, which is above the $3.21 U.S. expected on Wall Street.
Management said it’s raising its expectations for A.I. server shipments this year to $25 billion U.S., up from $20 billion U.S. forecast previously.
Dell is seen as a bellwether for the A.I. infrastructure industry given that it is a top vendor for systems that run Nvidia’s (NVDA) microchips and processors.
The company’s data center business, called Infrastructure Solutions Group, reported $14.11 billion U.S. in sales, which was in-line with analyst estimates.
Dell said it shipped $5.6 billion U.S. of A.I. servers during Q3 and sold $4 billion U.S. of storage gear during the quarter.
The laptop computer and PC business, called Client Solutions Group, reported $12.48 billion U.S. in sales, up 3% year-over-year but slightly lower than the $12.65 billion U.S. expected on Wall Street.
The company spent $1.6 billion U.S. during the quarter on share repurchases and dividend payments.
DELL stock is up 3% immediately after its latest financial results. So far this year, the share price has gained 8% to trade at $125.92 U.S. per share.
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