Dell Profit Beats Forecasts, but Sales Miss Slightly
Dell shares jumped in extended-trading Tuesday after earnings easily exceeded Wall Street estimates, though the firm handed in revenue that fell just shy of analysts' forecasts.
The IT giant reported first-quarter earnings of 55 cents a share, excluding one-time items. Dell earned 30 cents a share on the same basis during the same period a year earlier.
Sales for the most recent quarter reached $15.02 billion, up from $14.87 billion last year.
The company was seen earning 44 cents a share on revenue of $15.41 billion, according to a consensus estimate from Thomson Reuters.
Dell reported an adjusted gross margin of 23.4 percent.
Shares of Dell popped more than 5 percent in extended trading Tuesday. The shares were initially halted after the earnings release. Get after-hour quotes for Dell here.
The shares closed at $15.90 in the regular trading session. Volume exceeded 42.6 million shares before the closing bell.
"We continue to build momentum with our strategy to expand our enterprise solutions and services business, and it's contributing to our strong financial results," said Brian Gladden, CFO of Dell in a prepared statement. "We have built an $18 billion enterprise solutions and services business with exciting growth potential and our execution in the core client business continues to be very good."
Earlier Tuesday, Dell rival Hewlett-Packard reported quarterly earnings that were ahead of expectations, but the company slashed its outlook on the heels of a warning from its CEO of "another tough quarter" ahead.
HP cut its outlook for the third quarter and full fiscal year, due in part to impact from the Japanese earthquake and tsunami as well as weak sales in personal computers and reduced operating profit for services.