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Dell story updated with exec comments from earnings call

NEW YORK (

TheStreet

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Dell

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shares fell 1.2% in after-hours trading on Tuesday after its third quarter revenue results failed to meet analyst expectations, despite beating earnings estimates.

The world's third-largest PC maker reported adjusted earnings of 54 cents a share on revenue of $15.4 billion. Analysts were predicting earnings of 47 cents a share on revenue of $15.7 billion.

Dell CEO Michael Dell

Dell also said it's on track to exceed its guidance of 17% to 23% full fiscal-year operating income growth.

The company expects to hit the lower range of its revenue outlook of 1% to 5% growth for the full-fiscal year given macro uncertainties in the hard disk drive business. These shortages, caused by flooding in Thailand, have disrupted operations in at least a dozen factories, including Dell supplier

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"We want to express our concern for those affected by the flooding," Jeff Clarke, Dell's vice chairman for Global Operations & End User Computing, said during the earnings call. "It has significantly impacted the hard drive supply chain but the complexity and state of affairs in Thailand makes it difficult for the industry to pinpoint the magnitude."

Dell declined to comment on the effect of the flooding on the company's fourth quarter results.

In recent quarters, Dell has shifted away from consumer products and towards its enterprise business, such as servers, storage, networking, and services

"This is a new Dell," CEO Michael Dell said on the earnings call.

Sales in Dell's enterprise business grew 8% over last quarter to $4.7 billion.

Its consumer business dropped 6% to $2.8 billion.

-- Written by Olivia Oran in New York

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