Dell getting smoked after hours, down $3 or almost 10% on earnings report.
Dell 2Q Profit Rises, Revenue Misses View
Thursday August 11, 5:19 pm ET
Dell Second-Quarter Profit Rises 28 Percent, but Revenue Comes in Lower Than Expected
ROUND ROCK, Texas (AP) -- Dell Inc., one of the world's largest personal computer makers, on Thursday said second-quarter profit rose 28 percent, driven by increased shipments during a period of tough price competition among rivals.
Quarterly revenue was light, however, and the company forecast third-quarter sales below Wall Street expectations.
Dell's earnings came out after the close of trading. Its shares fell 15 cents to close at $39.58 on the Nasdaq Stock Market, and then dropped 7.1 percent to $36.77 in after-market activity.
Net income climbed to $1.02 billion, or 41 cents per share, from $799 million, or 31 cents per share, during the year-ago period. The computer giant said its results included a 3-cent tax benefit, without which it would have posted earnings of 38 cents per share in the latest quarter.
Revenue rose 15 percent to $13.43 billion from $11.71 billion last year. The results matched Wall Street profit expectations of 38 cents per share but fell below projected revenue of $13.71 billion, according to analysts polled by Thomson Financial.
Dell said it achieved industry-record shipments of 9.1 million computer systems -- including 2.7 million mobility products -- and company-record revenue of more than $2 billion from software and peripheral products, including printers and displays.
"While average selling prices were down more than we would have liked, we focused on balanced profitability and, in the process, delivered to our guidance for EPS," said Chief Executive Dell Rollins in a statement.
Rollins said continued steady purchase rates by corporate customers, the seasonal impact of back-to-school buying in the consumer segment, and continued growth in markets outside of the United States will drive Dell's third-quarter business.
The company projects third-quarter earnings in the range of 39 cents to 41 cents per share on revenue between $14.1 to $14.5 billion. Wall Street expects earnings of 41 cents per share on higher revenue of $14.63 billion.
Dell 2Q Profit Rises, Revenue Misses View
Thursday August 11, 5:19 pm ET
Dell Second-Quarter Profit Rises 28 Percent, but Revenue Comes in Lower Than Expected
ROUND ROCK, Texas (AP) -- Dell Inc., one of the world's largest personal computer makers, on Thursday said second-quarter profit rose 28 percent, driven by increased shipments during a period of tough price competition among rivals.
Quarterly revenue was light, however, and the company forecast third-quarter sales below Wall Street expectations.
Dell's earnings came out after the close of trading. Its shares fell 15 cents to close at $39.58 on the Nasdaq Stock Market, and then dropped 7.1 percent to $36.77 in after-market activity.
Net income climbed to $1.02 billion, or 41 cents per share, from $799 million, or 31 cents per share, during the year-ago period. The computer giant said its results included a 3-cent tax benefit, without which it would have posted earnings of 38 cents per share in the latest quarter.
Revenue rose 15 percent to $13.43 billion from $11.71 billion last year. The results matched Wall Street profit expectations of 38 cents per share but fell below projected revenue of $13.71 billion, according to analysts polled by Thomson Financial.
Dell said it achieved industry-record shipments of 9.1 million computer systems -- including 2.7 million mobility products -- and company-record revenue of more than $2 billion from software and peripheral products, including printers and displays.
"While average selling prices were down more than we would have liked, we focused on balanced profitability and, in the process, delivered to our guidance for EPS," said Chief Executive Dell Rollins in a statement.
Rollins said continued steady purchase rates by corporate customers, the seasonal impact of back-to-school buying in the consumer segment, and continued growth in markets outside of the United States will drive Dell's third-quarter business.
The company projects third-quarter earnings in the range of 39 cents to 41 cents per share on revenue between $14.1 to $14.5 billion. Wall Street expects earnings of 41 cents per share on higher revenue of $14.63 billion.
