The renowned tech corporation, established by Michael Dell in 1984, has experienced remarkable successes and significant setbacks over its four-decade journey. In 1992, Dell Computer Corp. secured a place on Fortune’s list of the world’s top 500 companies.
However, adversity struck, leading to a Securities and Exchange Commission inquiry that incurred a hefty $100 million expense for Dell.
Despite these trials, Dell transitioned into private ownership in 2013 through a leveraged buyout, only to later announce its intention to return to the public market five years thereafter.
Presently, the company established in the same year as the blockbuster movie “Ghostbusters” has fully embraced the current trendiest technological concept: artificial intelligence (AI).
AI played a pivotal role in the company’s fourth-quarter earnings disclosure, propelling its shares to skyrocket by over 30% within the initial moments of trading on March 1, reaching an all-time high.
This surge closely follows the impressive earnings performance of AI chipmaker Nvidia (NVDA), which exceeded Wall Street’s expectations.
In Q4, Dell surpassed FactSet’s analyst consensus by earning $2.20 per share, exceeding the expected $1.73 per share. The revenue also outperformed, totaling $22.3 billion compared to the anticipated $22.2 billion.
In the preceding year, the company reported earnings of $1.80 per share from $25 billion in sales.
Regarding future prospects, Dell anticipates first-quarter revenue to range between $21 billion and $22 billion. The FactSet consensus projects $21.5 billion.
Chief Financial Officer Yvonne McGill highlighted Dell’s robust financial performance, with $8.7 billion in cash flow from operations for the fiscal year. Additionally, the company has returned $7 billion to shareholders since the first quarter of fiscal 2023.