Dell profit jump 46% in second quarter Shares rise after hours; results tied to servers, laptops.
Looks like Dell (DELL) is back on the horse as it builds and restructures the company, Just weeks after closing the books on an internal accounting investigation, Dell announced quarterly results that exceeded analysts' forecasts and suggest the computer maker's turnaround is gaining steam.
Yet Dell said its earnings took a hit from higher expenses related to an accounting investigation and payments for expired stock options.
In preliminary results for the fiscal second-quarter, Dell said it earned $733 million, or 32 cents a share, compared to $502 million, or 22 cents a share, in the same period a year ago.
Revenue rose 7% to $14.8 billion from last-year's $14.1 billion.
Chief Executive Michael Dell said the company was showing signs of improvement, but remained lukewarm about its overall performance.
"While we've made progress against our goals, we are still in the early stages of transforming our company's structure, cost and operations," Dell said in a statement.
"It was really a mixed bag," said Charles Smulders, who covers the PC industry for technology research firm Gartner Inc. "To be honest, not too much was really expected this quarter." Smulders also said that Dell's slight 2% rise in its PC sales remains a sign that the company is still dealing with greater market competition. Dell, which for several years was the No. 1 PC maker worldwide, lost that position to rival Hewlett-Packard Co. (HPQ) in late 2006.
During the second quarter of 2007, Dell's worldwide PC shipments fell 5.5% from a year ago, while H-P's shipment rose almost 37%, according to figures by Gartner. In the U.S., where Dell is still the No. 1 PC company, second-quarter shipments fell more than 11% from 2006, but H-P's saw an almost 26% rise in its PC shipments.
I think that Dell's better then expected results is greatly thanks to the overall increase in PC sales this quarter (most PC manufacturers reported higher sales and revenues as demand increased), But as a long run investment I would defiantly buy Dell as Michael Dell is back at the executive sit and restructures the company.
"It was really a mixed bag," said Charles Smulders, who covers the PC industry for technology research firm Gartner Inc. "To be honest, not too much was really expected this quarter." Smulders also said that Dell's slight 2% rise in its PC sales remains a sign that the company is still dealing with greater market competition. Dell, which for several years was the No. 1 PC maker worldwide, lost that position to rival Hewlett-Packard Co. (HPQ) in late 2006.
During the second quarter of 2007, Dell's worldwide PC shipments fell 5.5% from a year ago, while H-P's shipment rose almost 37%, according to figures by Gartner. In the U.S., where Dell is still the No. 1 PC company, second-quarter shipments fell more than 11% from 2006, but H-P's saw an almost 26% rise in its PC shipments.
I think that Dell's better then expected results is greatly thanks to the overall increase in PC sales this quarter (most PC manufacturers reported higher sales and revenues as demand increased), But as a long run investment I would defiantly buy Dell as Michael Dell is back at the executive sit and restructures the company.
1 comments:
there is another nice article about michael dell in http://futureseekers.blogspot.com/
Post a Comment