Dell stock surges more than 5% after earnings beat

Dell Technologies Inc. shares surged in the extended session Monday after the computer maker’s quarterly results topped Wall Street estimates.

Dell 
DELL,
-2.31%
shares rallied as much as 7% after hours, following a 2.3% decline in the regular session to close at $41.07. Year-to-date, Dell shares are down 27%, compared with a 17% fall in the S&P 500 index
SPX,
-0.39%
 and a 30% drop in the tech-heavy Nasdaq Composite Index 
COMP,
-1.09%.

Dell reported a third-quarter net income from continuing operations of $241 million, or 33 cents a share, compared with net income of $3.68 billion, or $4.68 a share, in the year-ago period.

Adjusted earnings, which excludes stock-based compensation expenses and other items, were $2.30 a share, compared with $1.66 a share in the year-ago period. Analysts surveyed by FactSet had forecast earnings of $1.60 a share.

Dell’s revenue fell to $24.72 billion from $26.42 billion in the year-ago quarter, while analysts had forecast revenue of $24.37 billion.

In Dell’s PC division — known as Client Solutions Group, or CSG — the company reported revenue of $13.78 billion compared with the Street’s $13.93 billion forecast. Consumer sales fell to $3.03 billion, down from $4.26 billion a year prior, while analysts had forecast $2.98 billion. Commercial sales declined to $10.74 billion, down from $12.29 billion last year, while analysts expected $10.55 billion.

Infrastructure Solutions Group, or ISG, revenue rose to $9.63 billion, from $8.43 billion in the year-ago period, while analysts expected $9.48 billion.

Last quarter, Dell executives dialed back their expectations for the PC market after quarterly sales came up short of the Wall Street consensus estimate, and shares logged their second worst day since going back public.

That report was sandwiched between estimates from analysis firms in July showing PC shipments were looking at their worst sales drop in at least a decade, and those in October showing the steepest declines since the mid-1990s when data started being collected on the industry.