EU TECHNOLOGY: Dell Q126 Results
DELL NR/BBB/BBB[P]
Top line beat on strong Client Services Group (i.e. consumer) performance; op income was soft though still grew by 10% while the market seems to be focussing on strong Q2 guidance, boosted by the PC refresh cycle and expected AI server shipments of $7bn (backlog is at $14.4bn).
- Q1 revs $23.4bn (+5% YoY, 1% beat) w/ Infrastructure +12% (2% miss), Client +5% (4% beat).
- Q1 adj-EBITDA $2.3bn (+6% YoY, 6% miss). Q1 op inc $1.7bn (+10% YoY, 9% miss).
- Q1 CFO $2.8bn and Q1 adj-FCF $2.2bn w/ $2.4bn returned to shareholders.
- Reported core lev of 1.6x vs. the 1.2x at FY25 and 1.5x at FY24. Increase on Q1 issuance.
- Minor tweaks to FY guidance with slightly higher EPS guide but substantially similar.
- Headlines focussing on Q2 guidance w/ revs of $28.5-29.5bn vs. consensus $26.8bn.
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Historical bullets
MNI: SWISS KOF APR ECONOMIC BAROMETER 97.1
- MNI: SWISS KOF APR ECONOMIC BAROMETER 97.1
USDCAD TECHS: Trend Needle Points South
- RES 4: 1.4415 High Apr 1
- RES 3: 1.4296 High Apr 7
- RES 2: 1.4108 50-day EMA
- RES 1: 1.3906/3959 High Apr 17 / 20-day EMA
- PRICE: 1.3822 @ 07:59 BST Apr 30
- SUP 1: 1.3781 Low Apr 21 and the bear trigger
- SUP 2: 1.3744 76.4% retracement of Sep 25 ‘24 - Feb 3 bull run
- SUP 3: 1.3696 Low Oct 10 2024
- SUP 4: 1.3643 Low Oct 9 ‘24
The trend set-up in USDCAD is unchanged and remains bearish. A fresh cycle low on Apr 21 reinforces the bear cycle and signals scope for a continuation near-term. Potential is seen for a move towards 1.3744, a Fibonacci retracement. Moving average studies are in a bear mode position, highlighting a dominant downtrend. First resistance to watch is 1.3959, the 20-day EMA.
GILTS: Opening calls
Gilt Opening calls, 93.33/93.37, Immediate focus will be on the 4.46% level, but should be short of that.
