By Senad Karaahmetovic

After Dell Technologies reported better-than expected Q1 adjusted earnings per share and revenue, shares of the company were up over 12% Friday in premarket trades

Technology company Q1 adjusted earnings per share were $1.84 as compared with $1.35 the previous year and far above analyst consensus at $1.40 per shares. Revenue adjusted rose 16% to $26.12 billion YoY beating consensus estimates of $25 billion.

Dell posted an adjusted gross margin (or 2.7%) of its quarter, down from 24.2% for the comparable period last year. An 8.2% adjusted operating margin was reported in Q1, compared with 7.8% for the previous year and analysts’ expectations of 7.26%.

Dell ended the first quarter with remaining performance obligations, deferred revenue, and cash & investments of $42 billion, $27.4 billion, and $8.5 billion, respectively.

Evercore ISI analyst Amit Daryanani hiked the price target on DELL stock to $63.00 per share from $60.00 after “impressive” results.

“While the guide is certainly better vs. feared we think DELL is providing a fairly conservative guide for FY23 as it implies sales growth will largely be flat in H2 on a y/y basis – given an elevated backlog and continued tailwinds on the infrastructure growth, this should enable for further upside moving forward,” Daryanani said in a client note.

JPMorgan analyst Samik Chatterjee said Dell’s results showed a “better-than-feared momentum.”

“We are raising our earnings estimates following the earnings print, reversing the estimate cuts we had taken heading into the print on account of supply concerns, as Dell appears to be managing the supply chain materially better, and is also reflecting higher confidence in relation to navigating the headwinds that have plagued most outlooks this earnings season,” the analyst told clients.