This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dell Does Just Swell

ROUND ROCK, Texas ( TheStreet) -- Dell (DELL - Get Report) shares jump on stronger than expected sales, profits and margins.

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs