Dell: Second Quarter Ahead of Expectations

Updated from 6:32 p.m. EDT

Once again, Dell(DELL Quote) proves to be the exception to the rule.

While competitors such as Hewlett-Packard(HPQ Quote) and Apple(AAPLE Quote) have thrown up their hands and warned of flagging revenue and profits amid weak demand for computers, today the Austin, Texas-based boxmaker said it is raising revenue and profit guidance for its fiscal second quarter ending Aug. 2.

In after-market trading, Dell, which closed the regular session up 26 cents, or 1.1% to $23.93, was up 6.2% to $25.41.

The company said revenue will reach $8.3 billion and 19 cents per share, above a forecast it issued May 16 for $8.2 billion and 18 cents per share. Currently, analyst consensus estimates are in line with Dell's earlier projections, according to Thomson Financial/First Call.

"They've been making public comments that they've been gaining share and business is doing well, within a weak demand environment. That's the way to view it -- though the market, I'm sure, won't," said Lehman Brothers analyst Dan Niles. "It's fairly Dell-specific in terms of them beating numbers. They're doing what they do best, which is continuing to gain market share. I wouldn't expect Gateway (GTW Quote)to come out soon and preannounce."

Dell said it raised guidance because of broad-based strength in its business, helped along by growth in the U.S. education, government and consumer business segments.

The new numbers represent a gain of about 9% in revenue and 19% in earnings from a year ago, excluding a special charge.

The company also said its operating profit as a percentage of revenue would be up sharply from the most recent and year-ago quarters.

It will deliver financial results for the quarter on Aug. 15.