DELL Earnings Cheat Sheet: Higher-Than-Expected Net Income, Shares Up
S&P 500 (NYSE:SPY) component Dell Inc. (NASDAQ:DELL) reported net income above Wall Street’s expectations for the first quarter. Dell Inc. is a technology company that offers desktop PCs, software and peripherals, servers and networking and storage services to customers worldwide.
Dell Earnings Cheat Sheet for the First Quarter
Results: Net income for the personal computer company rose to $945 million (49 cents/share) vs. $341 million (17 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.
Revenue: Rose 1% to $15.02 billion YoY.
Actual vs. Wall St. Expectations: DELL reported adjusted net income of of 55 cents/share. By that measure, the company beat the mean estimate of 43 cents/share. Estimates ranged from 38 cents per share to 48 cents per share.
Quoting Management: Michael Dell, chairman and chief executive officer said: “We’re off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving.”
Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose more than twofold and in the third quarter of the last fiscal year, the figure rose more than twofold.
Revenue has risen the past four quarters. Revenue increased 5.3% to $15.69 billion in fourth quarter of the last fiscal year. The figure rose 19.4% in third quarter of the last fiscal year from the year earlier and climbed 21.7% in second quarter of the last fiscal year from the year-ago quarter.
Gross margins grew 5.9 percentage points to 22.9%. The growth appeared to be driven by falling costs, as the figure fell 6.3% from the year earlier while revenue rose 1%.
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).
Stock Performance: Shares of DELL are up 5% after hours.