Dell Does Just Swell
Defying the ongoing slump in PC sales and the rising popularity of netbooks and Apple Mac computers, Dell posted a profit of 24 cents a share, according to a financial document on Dell Web site that appeared before the market closed.
The bottom-line performance was better than the 15-cent earnings in the prior quarter and exceeded analysts' estimates by a penny.
Sales for the fiscal second quarter ended last month were $12.7 billion, up from the $12.3 billion in the prior quarter but down from the $16.4 billion level in the year-ago period. Analysts were looking for sales of $12.6 billion, according to Yahoo! Finance.Margins showed a surprising improvement in the quarter as solid sales and cost cuts seem to be working. Dell's gross margin was 18.7%, which is wider than the 17.6% margin in the prior quarter. While laptop sales remained even with the prior quarter, Dell saw a 5% sequential increase in desktop PC sales and a 9% improvement in server revenue. Dell saw continued weakness in its sales to businesses large and small, but the company did get a nice 20% sequential bump up in sales to schools and governments. Dell results were released just prior to the market's close Thursday. In the few minutes of regular trading Dell's shares jumped 7% to $15.65. Written by Scott Moritz in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV