KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways:
Q2 beat, Q3 miss: Dell’s Q2 earnings of $2.32/share topped consensus ($2.29), but Q3 EPS guidance of $2.45/share midpoint fell short of expectations ($2.55).
Revenue momentum: Q2 revenue rose to $29.78 billion, ahead of estimates ($29.0 billion), reflecting resilience in PC and server demand.
Market reaction: Shares slipped 4.4% after-hours, as investors focused on weaker earnings guidance despite a headline beat.
Sector context: The miss highlights ongoing margin pressures in the PC and server industry, even as peers such as HP Inc (+4.57%) and Microsoft (+0.57%) trade higher on AI-driven optimism.
Results Breakdown
Q2 Earnings:
Adjusted EPS: $2.32 vs. $2.29 expected.
Revenue: $29.78B vs. $29.0B expected.
Q3 Guidance:
EPS: $2.45 (midpoint) vs. $2.55 expected.
Revenue outlook not disclosed in detail but implied softer margins.
Market and Investor Sentiment
The results illustrate a classic “beat-and-miss” quarter — stronger past performance but cautious forward guidance.
Investors appear more concerned with earnings sustainability in a competitive and cost-sensitive environment.
Guidance weakness may signal:
Ongoing pricing pressure in PCs as consumer demand normalises post-pandemic.
Potential slower uptake in enterprise servers amid cautious corporate IT spending.
Margin compression despite strong topline growth.
Strategic Context
Dell is positioning itself to capture AI server demand, which remains a structural growth driver. However, near-term earnings suggest cost challenges are weighing on profitability.
The after-hours decline contrasts with recent enthusiasm in tech, particularly around AI infrastructure, underscoring stock-specific execution risks.
Investor Takeaway
While Dell’s Q2 beat highlights solid revenue execution, the weaker Q3 EPS outlook shifts focus to margin resilienceand execution in AI-driven growth areas. Near-term volatility is likely as investors reassess earnings momentum relative to peers like HP and Microsoft. Long-term upside may hinge on Dell’s ability to monetise AI infrastructure demandwithout sacrificing profitability.
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