DELL Earnings: CEO Says Think Long-Term, Stock Down Over 5% After Reporting

S&P 500 (NYSE:SPY) component Dell Inc. (NASDAQ:DELL) reported its results for the second quarter. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.

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Dell Inc. Earnings Cheat Sheet

Results: Net income for Dell Inc. fell to $732 million (42 cents per share) vs. $890 million (48 cents per share) a year earlier. This is a decline of 17.8% from the year-earlier quarter.

Revenue: Fell 7.5% to $14.48 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dell Inc. reported adjusted net income of 50 cents per share. By that measure, the company beat the mean estimate of 45 cents per share. It fell short of the average revenue estimate of $14.92 billion.

Quoting Management: “We’re transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term,” said Michael Dell, chairman and CEO. “We’re clear on our strategy and we’re building a leading portfolio of solutions to help our customers achieve their goals.”

Key Stats:

Dell (NASDAQ:DELL) has now seen net income fall in each of the last three quarters. In the first quarter, net income fell 32.8% from the year earlier, while the figure fell 17.6% in the fourth quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 43 cents versus a mean estimate of net income of 46 cents per share.

Revenue has dropped in the past two quarters. In the first quarter, revenue declined 4% to $14.42 billion from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 49 cents per share, down from 56 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.12 a share to $1.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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