Shares in Dell (DELL) popped more than 5% in pre-market trading on Wednesday, after the US tech company’s fourth-quarter guidance topped expectations.
In its third quarter results, released on Tuesday, Dell said it expected to report revenue of between $31bn (£23.5bn) and $32bn for the current quarter. That was above analysts’ average estimate of $27.59bn, according to LSEG-compiled data reported by Reuters.
Dell said it expected fourth-quarter adjusted earnings per share (EPS) to be $3.50 at the midpoint, which was also ahead of estimates of $3.21.
Read more: Budget live blog: Reeves set to freeze income tax thresholds
Jeff Clarke, vice chairman and chief operating officer at Dell, said: “AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3bn and an unprecedented $30bn in orders year-to-date.”
For the third quarter, Dell posted revenue of $27bn, which was up 11% year-on-year but slightly below expectations of $27.13bn. However, adjusted EPS of $2.59 bested estimates of $2.47.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Dell’s results are the latest in a string of companies reporting strong AI demand. For all the talk of bubbles, the results we’ve seen over the past few weeks suggest anything but.
“Sure, there are companies where sentiment has got a little carried away, and a healthy pullback was on the cards. But with the narratives flying around in the past week or so, one would assume the AI story is running on fumes – that’s simply not what the numbers are showing.”
NYSE – Delayed Quote • USD
At close: 25 November at 16:04:27 GMT-5
Fellow computer-maker HP (HPQ) was down 5% in pre-market trading, after it announced it intends to cut thousands of jobs as part of plans for company-wide AI adoption.
On Tuesday, HP unveiled its initiative to “drive customer satisfaction, product innovation, and productivity” through AI adoption and enablement. The company estimated that the plans would result in gross run-rate savings of around $1bn by the end of the 2028 fiscal year.
HP said it expected to incur around $650m in costs related to restructuring and other changes, and about $250m in the 2026 fiscal year. The company added that it expected to reduce its global headcount by some 4,000 to 6,000 employees.
Read more: Stocks that are trending today
CEO Enrique Lores told Yahoo Finance on Tuesday that HP “started to do work on this a couple of years ago inside the company.”
“And we have seen that by redesigning processes first, and then adopting AI and AI tools we can both accelerate product development, improve customer satisfaction and boost productivity,” he said.
The announcement came as HP reported its fourth-quarter results, posting revenue of $14.6bn, which was slightly below the $14.8 billion analysts expected, according to Bloomberg data. Adjusted EPS fell 3% to $0.93, in line with estimates.
NYSE – Delayed Quote • USD
At close: 25 November at 16:00:02 GMT-5
Another major US company in focus on Wednesday was department store chain Kohl’s, after its shares soared 42.5% in the previous session on the back of a third-quarter earnings beat.
Kohl’s posted net sales of $3.41bn, which was ahead of analyst expectations of $3.33bn, according to Investing.com.
Stocks: Create your watchlist and portfolio
Michael J. Bender, CEO of Kohl’s, said: “We are pleased with Kohl’s third quarter results, marking a third consecutive quarter of delivering top-line and bottom-line performance ahead of our expectations.
“These results are a direct reflection of the progress we are making against our 2025 initiatives, reinforcing our confidence as we continue to move in the right direction.”
Kohl’s also confirmed Bender as the company’s CEO, having served in an interim capacity in the role since May.
NYSE – Delayed Quote • USD
At close: 25 November at 16:00:02 GMT-5
Shares in cloud security provider Zscaler (ZS) were down more than 7% in pre-market trading on Wednesday, after the company reported an increase in its operating loss and issued a weaker-than-expected outlook.
In its first quarter results, released on Tuesday, Zscaler reported a net loss per share of $0.07, less than the loss of $0.11 estimated by analysts, according to S&P Global Market Intelligence. Revenue of $788.1m was also better than expectations of $773.8m.
However, operating losses increased year over year to $36.3m during the quarter from $30.6m a year ago.
For the full year, the company expects revenue of $3.282bn to $3.301bn and net income per share of $3.78 to $3.82. For that last metric, Wall Street was expecting full-year earnings of $4.00 per share.
NasdaqGS – Delayed Quote • USD
At close: 25 November at 16:00:00 GMT-5
On the London market, shares in Pets at Home (PETS.L) climbed nearly 3%, after the retailer shared a turnaround plan for the business.
Ian Burke, interim CEO of Pets at Home, said it is “clear that urgent and necessary action is needed to return the retail business to growth to meet both our own expectations and those of our investor”.
“I’ve spent time visiting over 100 Pet Care Centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost,” he said.
Read more: Stocks and bond markets rise ahead of Reeves’ tax-heavy budget speech
In its interim results, Pets at Home reported group statutory revenue of £778.3m ($1.03bn) for the first half of the year, which was down 1.3% year-on-year. Statutory profit before tax of £36.2m was down 29% on the same period last year.
Mark Crouch, a market analyst for eToro, said that Pets at Home “retail needs urgent revival, not least because the balance sheet has bulked up with a worrying rise in debt.
“Investors, already weary after several years of poor share-price performance, will want evidence that the slump in consumer demand isn’t becoming structural.
“Unless retail can be coaxed back into good health, the vet business may have to continue doing the heavy lifting. It’s a solid franchise with pricing power, but even the best-behaved hound can’t pull the whole sled forever.”
Read more:
Download the Yahoo Finance app, available for Apple and Android.
