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Dell says COVID-19 helped sales in some sectors, stock jumps more than 7% after earnings

Jeremy C. Owens

Dell Technologies Inc. said that the COVID-19 pandemic has boosted its business in certain sectors Thursday and showed off financial performance well beyond expectations, sending shares more than 7% higher in late trading. The tech company revealed first-quarter earnings of $182 million, or 19 cents a share, on revenue of $21.9 billion, roughly even with sales from a year before. After adjustments for stock-based compensation and other effects, the company reported earnings of $1.34 a share, down from $1.45 a share a year ago. Analysts on average expected adjusted earnings of 97 cents a share on sales of $20.75 billion. "Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice," Chief Operating Officer Jeff Clarke said in the announcement. "In Q1, we saw orders with banking and financial services, government, healthcare and life sciences customers up 15 to 20 percent - all to meet immediate needs of their customers, communities and patients." Dell stock closed a penny higher at $45.58, but then shot to more than $49 in after-hours trading following release of the results.