U.S. Movers: Dell Technologies, HP Inc, Workday

Scott Peters
27 Nov, 2024
New York City

Dell Technologies declined 12.8% to $124.32 after the company posted weaker-than-expected fiscal third quarter results. 

Revenue in the third quarter ending on November 1 increased 10% to $24.4 billion from $22.3 billion, net income advanced 12% to $1.1 billion from $1.0 billion, and diluted earnings per share rose 16% to $1.58 from $1.36 a year earlier. 

“AI is a robust opportunity for us with no signs of slowing down,” said Jeff Clarke, vice chairman and  chief operating officer, Dell Technologies. 

“Interest in our portfolio is at an all-time high, driving record  AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across  all customer types.” 

HP Inc. dropped 7.7% to $36.09 after the personal computing company estimated weaker-than-expected adjusted earnings in the fiscal 2025 first quarter.

The company estimated fiscal 2025 first quarter diluted earnings per share between 57 cents and 63 cents and for the full-year fiscal 2025 between $3.06 and $3.36. 

The company estimated adjusted earnings between 70 cents and 76 cents, sharply lower than as much as 83 cents estimated by some analysts. 

Net revenue increased 1.7% to $14.1 billion from $13.8 billion, net income decreased 7% to $0.9 billion from $1 billion, and diluted earnings per share fell 4% to 93 cents from 97 cents a year ago. 

HP returned $1.2 billion to shareholders in the fourth quarter, including $900 million to repurchase 25.4 million of its own stock and $263 million in dividend payment of 27.56 cents per share.      

Workday Inc. plunged 12% to $238.0 after the human resource software company estimated lower-than-expected revenue and operating margin in the fourth quarter. 

The software company estimated subscription revenue of $2.025 billion and an operating margin of 25% in the period. 

Revenue in the fiscal third quarter ending in September increased 15.8% to $2.1 billion from $1.8 billion, net income advanced to $193 million from $114 million, and diluted earnings per share rose to 72 cents from 43 cents a year ago. 

Workday repurchased approximately 0.6 million shares of Class A common stock for $157 million as part of its share repurchase programs.