Dell Technologies (NYSE: DELL) surpassed the third quarter of fiscal 2020 earnings estimates. However, Dell failed to meet the revenue targets for the third quarter. The computer tech firm reported adjusted earnings of $1.75 per share. GAAP revenue of $22.8 billion and non-GAAP revenue of $22.9 billion, were up 2% and 1%, respectively.
Analysts had expected Dell to report earnings of $1.62 per share on revenue of $23.04 billion for the third quarter. Shares of Dell, which ended down 3.4% at $53.19 when the market closed today, were up slightly in the after-hours.
On a GAAP basis, Dell earned $0.66 per share in the third quarter ended November 1, 2019. The Round Rock, Texas-based firm’s Client Solutions Group (CSG) grew 5% to $11.4 billion. However, Infrastructure Solutions Group’s revenue declined 6% year-over-year, due to a drop in servers and networking revenue, which slipped 16% to $4.2 billion in the recently ended quarter.
“This quarter’s results were driven by the strength of our diverse model, with our storage, commercial client and VMware businesses performing very well,” said CEO Tom Sweet.
Dell’s subsidiary VMware (NYSE: VMW) reported its quarterly results after the market close. VMware’s adjusted EPS declined by 4% to $1.49 and revenue increased 12% to $2.46 billion in the third quarter of 2020.
Dell stock has gained 16% in the past three months and 9% so far this year.