Dell beats on earnings but issues cautious guidance

Yahoo Finance Live anchors discuss third-quarter earnings for Dell.

Video transcript

[AUDIO LOGO]

BRAD SMITH: Shares of Dell technologies in focus after the company posted better-than-expected third-quarter earnings on both the top and bottom lines. But did see revenue decrease 6% year-over-year. They also issued Q4 guidance that was below estimates.

So there you're taking a look at some of what was expected versus actually what came in here. And there's two core ways that this company really breaks out their business. It's now the Infrastructure Solutions Group and then the Client Solutions Group. Infrastructure Solutions, though, had a what they're calling a record third quarter. $9.6 billion, up 12% year-over-year.

BRIAN SOZZI: I don't have a lot of feels for Dell. Overall, I think they were cautious on their earnings call last night. I would suspect when I talked to HP CEO Enrique Lores later on today when they report earnings, they will have somewhat of a similar cautious tone. Getting some pullback in the enterprise customer. Of course, we're seeing that ongoing PC correction. I'm surprised you're seeing-- not seeing the stock down even more.

JULIE HYMAN: Yeah, I mean, when we're seeing-- a lot of companies pull back spending, right? And as we talked about the other day when we talked about Palo Alto, there are some enterprise spending areas, expenses, that companies are not going to necessarily pull back as much on. Maybe cybersecurity is one of them. But if it's the PC replacement cycle for your employees or if it's other sort of computing needs, maybe you're not going be spending as much as you were.

BRIAN SOZZI: Yeah.

BRAD SMITH: For reelz.