Dell Technologies exceeded Wall Street profit and revenue projections on Thursday, as businesses poured money into the company’s PCs and laptops to accommodate hybrid work. Dell’s stock climbed almost 7% in extended trading after the PC maker projected revenue and earnings for the current quarter that beat analysts’ estimates.

Over the last few quarters, the company has witnessed significant demand for its products and services as companies invest in remote-working hardware and consumers upgrade their gadgets.

Dell’s client solutions group (CSG), which houses its hardware divisions, had a 17 percent increase in revenue in the quarter ending April 29.

Dell’s significant exposure to high-end business PCs helped

Angelo Zino, a senior equities analyst at CFRA Research, said that the rise is related to Dell’s significant exposure to business PCs, which have higher prices. In contrast, it has very little exposure to Chromebooks, where most of the impact has been felt.

Dell’s business PC revenue increased by 22% to $12 billion in the third quarter. However, some effects from the worldwide chip shortage and supply chain delays, which were compounded by the China lockdowns, were apparent in the quarter, according to the business.

What can we expect?

In a post-earnings call, Jeff Clarke, the co-Chief Operating Officer, said that Dell expects the backlog to remain high through at least the second quarter because of current demand and supply chain challenges affecting the entire industry.

In the current quarter, the business anticipates sales to be between $26.1 billion to $27.1 billion, with adjusted earnings per share expected to be between $1.55 and $1.70. According to Refinitiv IBES statistics, analysts expect a profit of $1.47 per share and sales of $25.6 billion in the second quarter.

The company posted an adjusted profit of $1.84 per share and sales of $26.12 billion in the first quarter, compared to projections of $1.39 per share and $25.04 billion.

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