Dell Technologies (DELL) shares advanced after hours on Thursday after the computer maker swung to a fiscal-second-quarter profit from a year-earlier loss on 1.9% higher revenue.
The stock was trading 6.9% higher to $50.01 after finishing the regular session up 3.3%. Earlier on Thursday, the Defense Department announced that it had awarded its $7.6 billion Defense Enterprise Office Solutions cloud contract to a group composed of Dell, General Dynamics (GD - Get Report) CSRA unit and privately held Minburn Technology Group.
For the quarter ended Aug. 2, the Round Rock, Texas, company reported earnings per share of $4.83, or an adjusted $2.15, compared to analyst consensus estimates of adjusted profit of $1.50 a share, according to FactSet. Revenue of $23.37 billion was in line with analyst estimates.
The company reported net income of $3.69 billion against a loss of $499 million in the year-earlier quarter.
"IT spending remains healthy and our business drivers remain strong," Vice Chairman Jeff Clarke said in a statement.
Dell paid down $2 billion of gross debt in the quarter and has paid down $2.4 billion in 2019 to date. The company ended the quarter with cash and investments of $10 billion.
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