BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Dell Technologies Surges on Strong Fiscal Q4 Results and Dividend Increase
Dell Technologies (NYSE: DELL) has announced its fiscal 2024 fourth-quarter and full-year financial results, showcasing a significant performance that outpaced analysts' expectations on both the top and bottom lines. The news sent Dell's shares soaring more than 15% in extended trading Thursday, highlighting the market's positive response to the company's robust earnings and strategic moves.
Fiscal Fourth Quarter Highlights
Dell reported a revenue of $22.32 billion for the quarter, a decrease of 11% from $25.04 billion in the same period last year. However, the company's net income saw a dramatic increase, jumping 89% to $1.16 billion from the $614 million reported in the year-ago quarter. Earnings per share (EPS) stood at an adjusted $2.20, surpassing the $1.73 expected by analysts surveyed by LSEG, formerly known as Refinitiv.
Despite the year-over-year revenue decline, Dell's financials demonstrated strong demand for its products, especially its AI-optimized servers. The Infrastructure Solutions Group (ISG) reported $9.3 billion in revenue, with servers and networking contributing $4.9 billion, driven significantly by AI server demand. The Client Solutions Group (CSG) brought in $11.7 billion, although both segments saw year-over-year declines.
Annual Dividend Increase
In a testament to its confidence in the business and its strong cash flow generation capabilities, Dell has announced a 20% increase in its annual dividend to $1.78 per share. Yvonne McGill, Dell's Chief Financial Officer, emphasized the company's optimistic outlook and its commitment to shareholder returns.
Full-Year Fiscal 2024 Performance
For the full fiscal year, Dell posted $88.4 billion in revenue, a 14% decrease from the previous year. Operating income was $5.2 billion, with non-GAAP operating income at $7.7 billion. The company reported a substantial full-year cash flow from operations of $8.7 billion and ended the year with $9.0 billion in cash and investments. Full-year diluted EPS was $4.36, with non-GAAP diluted EPS at $7.13.
Looking Ahead: Fiscal 2025 and AI Opportunities
Dell's leadership is bullish on the fiscal year 2025, driven by the momentum around artificial intelligence and the company's strategic initiatives to capture growth in this area. Jeff Clarke, Vice Chairman and Chief Operating Officer, highlighted the nearly 40% sequential increase in AI-optimized server orders and the near doubling of the backlog, exiting the fiscal year at $2.9 billion.
The company expects to report revenue between $21 billion and $22 billion for the fiscal first quarter of 2025. Dell's focus on expanding its AI solutions portfolio and partnerships, such as with Nokia and the integration of AMD and NVIDIA technologies, positions it strongly to leverage the burgeoning AI market and return to growth.
Conclusion
Dell Technologies' fiscal 2024 fourth-quarter and full-year results reflect a resilient business model capable of navigating challenging macroeconomic conditions while capitalizing on high-growth opportunities in AI. With a significant increase in its annual dividend and a positive outlook for the coming year, Dell affirms its confidence in its strategy and its ability to generate value for shareholders.
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