Why Dell Technologies Stock Fell Friday
What happened
Shares of information technology and computer systems company Dell Technologies (NYSE: DELL) took a hit on Friday, falling as much as 14%. As of 2:30 p.m. EDT, the stock was down 10.2%.
The stock's decline is likely due to the company's worse-than-expected top-line growth.
So what
Dell reported first-quarter revenue of $21.9 billion, up 3% year over year. Non-GAAP revenue was $22 billion, up 2% year over year. On average, analysts expected the company to report revenue of $22.3 billion for the quarter.
Non-GAAP earnings per share for the period were $1.45, well ahead of the $1.22 analysts were looking for.
A decline in the company's server business weighed on Dell's results. "Clearly the U.S.-China trade tensions are a bit of overhang on the (servers) business," said Dell CFO Thomas Sweet in an earnings call with investors, according to Reuters.
Servers and networking revenue in the company's infrastructure solutions group segment fell 9% year over year during the quarter.
Now what
Dell Technologies' products and operations vice chairman Jeff Clarke remained optimistic about the company's potential.
"We're in the middle of a technology led investment cycle that's fueled by the explosion of data," Clarke said. "No one is better positioned to deliver the solutions customers need to grow in the data era."
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