Dell Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Dell Inc. (NASDAQ:DELL) reported net income above Wall Street’s expectations for the second quarter. Dell Inc. is a technology company that offers desktop PCs, software and peripherals, servers and networking and storage services to customers worldwide.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Dell Earnings Cheat Sheet for the Second Quarter

Results: 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.

Revenue: Rose 0.8% to $15.66 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: 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.

Quoting Management: 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.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 12 cents in the first quarter, by 16 cents in the fourth quarter of the last fiscal year, and by 13 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 1% to $15.02 billion in the first quarter. The figure rose 5.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 19.4% in the third quarter of the last fiscal year from the year-ago quarter.

Gross margins grew 5.9 percentage points to 22.5%. The growth appeared to be driven by falling costs, as the figure fell 6.3% from the year earlier while revenue rose 0.8%.

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).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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