Dell shares drop 20% due to lower-than-expected earnings guidance, despite exceeding revenue estimates.

From Investing.com: 2024-05-31 14:06:48

Shares in Dell plummeted by 20% in US trading after revealing a lower-than-expected earnings outlook. The company predicted adjusted per-share income of $1.65 in the July-ended quarter, below Wall Street’s $1.88 estimate. Margins are expected to decline by 150 basis points due to increased spending on AI servers. Despite exceeding revenue estimates with $22.2 billion in Q1, stock fell due to high expectations. The Infrastructure Solutions Group saw a 22% revenue increase, driven by a 42% jump in server sales. AI server orders reached $2.6 billion, reflecting Dell’s push towards AI-driven growth.



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