Dell Q1 Profit Surge; Shares Up 5%

(RTTNews) - Dell Technologies Inc. (DELL) Thursday reported a surge in profit for the first quarter, as quarterly revenues rose 16% on strong demand for business PCs and networking services. The shares jumped 5% in extended trading.

Round Rock, Texas-based Dell's first-quarter profit from continuing operations rose to $1.07 billion or $1.37 per share from $659 million or $0.84 per share last year.

Adjusted earnings were $1.43 billion or $1.84 per share for the period, up from $1.06 billion or $1.35 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.39 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 16% to $26.12 billion from $22.59 billion last year. Analysts had a consensus revenue estimate of $25.04 billion.

Client Solutions Group revenues grew to 17% to a record $15.6 billion, driven by continued strength in commercial PCs, with commercial PC revenue of $12 billion, a 22% increase year-over-year.

Infrastructure Solutions Group revenue rose 16% to $9.3 billion, as servers and networking revenue was up 22% and storage revenue inched up 9%.

DELL closed Thursday's trading at $43.93, up $0.63 or 1.45%, on the NYSE. The stock further gained $2.33 or 5.30% in the after-hours trading.