This Is Why Dell Stock Is Rising Today

Dell Technologies, Inc. Class C +3.20% Post

Dell Technologies, Inc. Class C

DELL

169.38

169.10

+3.20%

-0.17% Post

Shares of Dell Technologies Inc. (NASDAQ:DELL) are rising Wednesday after the company issued strong guidance for the fourth quarter and full year.

  • DELL stock is racing ahead of the pack. Get the latest updates here.

What To Know: Dell said it expects fourth-quarter revenue to fall between $31 billion and $32 billion, ahead of analyst expectations, according to Benzinga data. The company expects earnings-per-share of $3.50, also above market expectations of $3.23.

For the full year, Dell’s guidance for revenue was increased to between $111.2 billion and $112.2 billion, up from a prior range of between $105 billion and $109 billion. The company also raised its full-year adjusted earnings guidance from $9.55 per share to $9.92 per share versus estimates of $9.55 per share.

For the third quarter, Dell beat market expectations for adjusted earnings per share and recorded a quarterly record in revenue, pulling in $27.01 billion.

“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date," said Jeff Clarke, COO of Dell. "Our five-quarter pipeline is multiples of our $18.4 billion backlog with a mix of neocloud, sovereign and enterprise customers.”

Several analysts changed price targets Wednesday morning, which may be adding to the market reaction.

  • Mizuho analyst Vijay Rakesh raised the firm’s price target to $175 from $170 and kept an outperform rating.
  • BofA Securities analyst Wamsi Mohan raised the price target from $160 to $163 and maintained a buy rating.
  • Morgan Stanley analyst Erik Woodring raised the price target to $113 from $110 and maintained a sell rating.
  • UBS analyst David Vogt lowered the firm’s price target to $167 from $186, but kept a buy rating on shares.

Analyst consensus has the stock at a Buy rating with an average price target of $159.75.

DELL Price Action: Shares of Dell are up 3.95%, trading at $130.94 at publication time, according to Benzinga Pro.

Read More:

  • Dell Delivers Mixed Q3 Earnings, Shares Volatile After Hours Even With Strong Outlook: ‘Dell Is Winning In AI’

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