Dell's Enterprise Solutions group booked a solid increase in revenue during the quarter, while hardware sales were dismal.
The company posted adjusted earnings of 21 cents a share, falling short of analysts' estimates of 35 cents a share. Dell reported first-quarter revenue of $14.1 billion, a 2% decrease from the prior year, but higher than consensus expectations of $13.5 billion.
The Enterprise Solutions group's successful first quarter threw weight behind activist investor Carl Icahn's bid to overtake Silver Lake Partners and founder Michael Dell's $13.65 a share offer to take the PC maker private. The numbers highlighted Icahn's argument that Dell's bid sharply undervalued the company's potential to become a serious enterprise computing company.Meanwhile, the poor performance in hardware sales during the quarter gave credence to Dell's argument that a turnaround can't occur under the harsh light of the public eye, where calls for spinoffs have grown louder. Icahn and Dell Both Gain From Dell Earnings
J.C. Penney (JCP - Get Report) on Thursday posted a first-quarter loss of $348 million, or $1.58 a share. The adjusted loss for the quarter totaled $289 million, or $1.31 a share, which includes charges related to the retailer's restructuring and management transition. The retailer disclosed last week that total sales for the quarter fell 16.4% from last year to $2.64 billion. J.C. Penney also said comparable-store sales declined by about 16.6% during the quarter. JCPenney Reports Loss, Tumbles After-Market
Nordstrom (JWN - Get Report) said Thursday that net income in the first quarter declined 3%, hurt by weak demand for spring merchandise and softer performance in the Northeast and Midwest. The retailer also lowered its revenue guidance for the year.
Autodesk's (ADSK - Get Report) adjusted first-quarter earnings were below Wall Street expectations, revenue declined 3%, and the software company on Thursday issued a weak second-quarter forecast. Adjusted earnings were 42 cents a share. Revenue fell to $570.4 million from $588.6 million a year earlier, Analysts were calling for earnings of 45 cents a share on revenue of $583.6 million.
Aruba Networks (ARUN - Get Report), the wireless communications company, posted a loss in its fiscal third quarter as customers delayed orders because of the weak global economy.
Stage Stores (SSI) is expected by Wall Street on Friday to post first-quarter earnings of 9 cents a share.
-- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts