Here’s Why Dell and Analog Devices Dumped After Earnings

Dell Inc. (NASDAQ:DELL) reported net income above Wall Street’s expectations for the second quarter. Net income for the personal computer company rose to $890 million (48 cents per share) vs. $545 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 63.3% from the year earlier quarter. Rose 0.8% to $15.66 billion from the year earlier quarter. DELL reported adjusted net income of 54 cents per share. By that measure, the company beat the mean estimate of 48 cents per share. Analysts were expecting revenue of $15.76 billion.

Michael Dell, chairman and chief executive officer: “We continue to see great momentum in the high-growth areas of our business, which is a direct reflection of the discipline and strong execution our global Dell team is applying to help solve real-world challenges for our customers. We’re creating efficiency across every step of the IT value chain and ultimately enabling all customers-from home users to large businesses and government organizations-to achieve the outcomes that matter most to them.”

Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Apple Inc. (NASDAQ:AAPL), Silicon Graphics Intl. Corp (NASDAQ:SGI), Super Micro Computer, Inc. (NASDAQ:SMCI), Intl. Business Machines Corp. (NYSE:IBM), Cray Inc. (NASDAQ:CRAY), EMC Corporation (NYSE:EMC), Microsoft Corporation (NASDAQ:MSFT), and Intel Corporation (NASDAQ:INTC).

Analog Devices Inc. (NYSE:ADI) reported its results for the third quarter. Net income for the semiconductor company rose to $219.9 million (71 cents per share) vs. $199.5 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 10.2% from the year earlier quarter. Rose 5.2% to $757.9 million from the year earlier quarter. ADI fell short of the mean analyst estimate of 73 cents per share. It fell short of the average revenue estimate of $780.6 million.

“After an unusually robust second quarter in which our revenue grew by 9% sequentially, revenue in the third quarter declined by 4% on a sequential basis while increasing 5% year-over-year,” said Jerald G. Fishman, President and CEO. “Nevertheless, most end markets remained relatively stable during the third quarter and we believe that most of the revenue shortfall was the result of supply chain recalibration, not a change in underlying demand.”

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), National Semicond. Corp. (NYSE:NSM), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), Maxim Integrated Products Inc. (NASDAQ:MXIM), ON Semiconductor Corp. (NASDAQ:ONNN), Silicon Laboratories (NASDAQ:SLAB), Cirrus Logic, Inc. (NASDAQ:CRUS), Broadcom Corporation (NASDAQ:BRCM), and Micrel, Incorporated (NASDAQ:MCRL).

More from The Cheat Sheet