Dell (NYSE:DELL) reported a net profit of $455 million in the second fiscal quarter of 2024, a 10% decline compared to the $506 million reported in the same period the previous year.

Shares of the company jumped 9.6% in premarket activity Friday.

The result fell short of analysts’ expectations polled by FactSet, which were at $535.1 million. Adjusted earnings per share reached $1.74, up from $1.68 the previous year. Analysts had expected $1.14 per share.

Net revenue totaled $22.93 billion, a 13% decrease from the $26.43 billion in the same period the previous year. The result exceeded analysts’ estimates polled by FactSet, who were expecting $20.86 billion.

Recurring revenue, a key metric indicating repeat customer purchases, ended at $5.6 billion, an 8% increase year-over-year. Deferred revenue also grew 8% year-over-year, reaching $30.3 billion, mainly attributed by Dell to increases in service and software maintenance contracts.

“We continue to focus on the most profitable segments of the market where we have a leadership position. Demand for our proprietary software-defined storage solution has grown for eight consecutive quarters,” said Chief Operating Officer Jeff Clarke in a comment accompanying the results.

Credit Suisse maintains its outperform rating with a target price raised from USD 62 to USD 74.

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