Dell’s Blowout Earnings Send Hardware Stocks Soaring in Premarket

CNBC reported Friday that Dell Technologies is the standout mover in premarket trading, with shares surging nearly 37% after the company dramatically raised its full-year outlook.

Dell’s Guidance Crushes Wall Street Expectations

Dell now sees adjusted earnings of $17.90 per share for the full year. Revenue guidance came in between $165 billion and $169 billion. Analysts surveyed by LSEG had penciled in just $13.09 per share on $142.5 billion in revenue. The gap between guidance and consensus was unusually wide, driving outsized market enthusiasm.

The Dell surge lifted the broader hardware sector alongside it. Hewlett Packard Enterprise climbed more than 17% in premarket. Super Micro Computer rose nearly 10%, while HP gained almost 7%.

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Blue Origin Explosion Drags Space Stocks Lower

Not every sector shared in Friday’s optimism. A Blue Origin rocket exploded on a Florida launchpad during a ground test Thursday night, rattling space-related equities. AST SpaceMobile, which holds a commercial partnership with Blue Origin, tumbled nearly 15% in premarket. Rocket Lab fell 5.5%, while EchoStar dropped 4.5%.

Apparel Retailers Under Pressure

Retail stocks faced heavy selling pressure Friday morning. Gap fell more than 15% after the company trimmed its annual sales growth forecast to a range of 1% to 2%, down from a prior estimate of 2% to 3%. First-quarter revenue of $3.50 billion also narrowly missed the $3.52 billion analyst consensus tracked by LSEG. Adjusted earnings of 38 cents per share edged past the 37-cent estimate, but that was not enough to offset the weaker-than-expected top line.

American Eagle Outfitters dropped roughly 11%. Comparable sales at its flagship American Eagle banner fell 2% in the first quarter. Analysts had expected growth of 3.1%. Second-quarter operating income guidance of $45 million to $50 million also missed the FactSet consensus of $65.3 million.

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Software Names Offer a Mixed Picture

Elsewhere in the premarket session, Okta gained nearly 8% after current-quarter and full-year revenue guidance came in ahead of FactSet expectations. NetApp surged 16.5% on strong forward guidance and a fiscal fourth-quarter beat. PagerDuty advanced 12.5% after lifting its full-year earnings outlook. On the downside, Autodesk slipped 7% after ex-subscription revenue missed estimates, and SentinelOne plunged 16% following its latest quarterly report.

Elastic fell more than 6% after guiding for current-quarter adjusted earnings of 57 to 59 cents per share, below the 63-cent FactSet consensus.

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