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Dell Technologies Delivers Record Third Quarter Fiscal 2022 Results
Record third quarter revenue of $28.4 billion, up 21%

Dell Tech reported on Tuesday third-quarter earnings that beat analysts’ forecasts and revenue that topped expectations.

Financial Highlights :

Dell Tech announced revenue of $28.39B compared to the prior corresponding quarter on revenue of $27.37B. Up 21%, driven by growth in all business units, customer segments and geographies, as well as broad strength across commercial PCs, servers and storage

Operating income was a third-quarter record of $1.3 billion, a 19% increase over the same period the prior year, and non-GAAP operating income was a third-quarter record of $2.9 billion, up 5%.

Net income was $3.9 billion, non-GAAP net income was $2.0 billion and adjusted EBITDA was $3.4 billion.

Net cash from operating activities was $3.3 billion.

Diluted earnings per share were $4.87, up 351% and non-GAAP diluted earnings per share were $2.37, up 17%.

Dell Tech shares are down 25.41% from the beginning of the year and are trading at $55.41, down-from-52-week-high. They are under-performing the EUR/USD which is down 0% year to date.

Dell Tech shares gained 1.35% in after-hours trade the report.

Dell Tech follows other major Information Technology sector earnings this month.

This quarterly report represents an earnings surprise of 1.72%. A quarter ago, it was expected that this computer and technology services provider would post earnings of $2.05 per share when it actually produced earnings of $2.24, delivering a surprise of 9.27%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Revenue at Dell’s client solutions business, home to its hardware devices, rose 35% in the quarter on booming demand from companies upgrading their computer systems to meet work-from-home challenges.

Revenue from its infrastructure solutions group, which includes the data center business, was up 5% at $8.4 billion in the quarter.

Dell Technologies ended the quarter with remaining performance obligations of $47 billion, up 26%, deferred revenue of $31 billion, and cash and investments of $24.2 billion. The company has paid down a total of $15.9 billion of debt year-to-date and received an Investment Grade corporate family rating from all three of the major credit rating agencies.

The company’s net income surged more than four-fold to $3.89 billion, or $4.87 per share, in the third quarter ended Oct. 29, from $881 million, or $1.08 per share, a year earlier.

 

Financial Statement :

 

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

Nine Months Ended

October 29,
2021

October 30,
2020

Change

October 29,
2021

October 30,
2020

Change

Net revenue:

Products

$

21,540

$

17,352

24%

$

58,968

$

50,127

18%

Services

6,854

6,130

12%

20,035

17,985

11%

Total net revenue

28,394

23,482

21%

79,003

68,112

16%

Cost of net revenue:

Products

17,552

13,789

27%

47,137

39,923

18%

Services

2,783

2,432

14%

8,164

6,919

18%

The total cost of net revenue

20,335

16,221

25%

55,301

46,842

18%

Gross margin

8,059

7,261

11%

23,702

21,270

11%

Operating expenses:

Selling, general, and administrative

5,293

4,772

11%

15,398

14,419

7%

Research and development

1,417

1,360

4%

4,208

3,884

8%

Total operating expenses

6,710

6,132

9%

19,606

18,303

7%

Operating income

1,349

1,129

19%

4,096

2,967

38%

Interest and other, net

3,436

273

NM

2,689

(929)

389%

Income before income taxes

4,785

1,402

241%

6,785

2,038

233%

Income tax expense (benefit)

897

521

72%

1,079

(124)

970%

Net income

3,888

881

341%

5,706

2,162

164%

Less: Net income attributable to non-controlling interests

45

49

(8)%

145

139

4%

Net income attributable to Dell Technologies Inc.

$

3,843

$

832

362%

$

5,561

$

2,023

175%

Percentage of Total Net Revenue:

Gross margin

28

%

31

%

30

%

31

%

Selling, general, and administrative

19

%

20

%

19

%

21

%

Research and development

5

%

6

%

5

%

6

%

Operating expenses

24

%

26

%

25

%

27

%

Operating income

5

%

5

%

5

%

4

%

Income before income taxes

17

%

6

%

9

%

3

%

Net income

14

%

4

%

7

%

3

%

Income tax rate

18.7

%

37.2

%

15.9

%

-6.1

%

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