Dell Trips on Revenue Miss
Dell CEO Michael Dell's conference call comments have been added to this story.
- PC maker Dell (DELL) reported adjusted earnings per share of 54 cents on sales of $15.66 billion for its fiscal second quarter.
- Analysts expected adjusted EPS of 49 cents on sales of $15.76 billion, compared to the 32 cents EPS on revenue of $15.5 billion reported in the year-ago period.
- Dell, whose shares are up 17% for the year on strength in its enterprise and small business sales, saw its stock close up 1.94% Wednesday at $15.80. Shares were down over 7% at one point in the after-hours session.
ROUND ROCK, Texas (TheStreet) -- Dell's second-quarter revenue miss and weak outlook sent the PC maker's shares into a tailspin after market close on Tuesday, despite posting a better-than-expected profit.
The PC maker's stock plunged more than 7% in extended trading when Dell reported revenue of $15.66 billion, below the $15.76 billion expected by analysts. Dell also revised its full-year revenue growth forecast to between 1% and 5% from its previous guidance range, which ran between 5% and 9%.
Excluding items, Dell earned 54 cents a share -- well above the consensus estimate of 49 cents a share.The tech giant highlighted ongoing strength in its enterprise business as a key driver of its profit growth. The company's enterprise solutions and services revenue, for example, grew 4% year-over-year to $4.6 billion, while its server and networking sales climbed 9%. Revenue from the company's profit-rich services business was up 6% to $2 billion. Dell's storage business grew 15%.
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