The company posted revenues of $14.4 Billion, sort of in-line with $14.45 Billion estimates. But $0.30 EPS is the headline instead of the $0.24 estimate. The street had been worried that the recent delay signaled that Dell was going to hell in a handbasket. But now sharers are up over 9% at $27.10 in after-hours trading and that is after closing up 0.7% at $24.82 on the day. It has traded as low as $18.95 and as high as $33.22 over the last 52-weeks.
It feels like the street has signaled a bottom has already been put in as far as the stock, so now we have to see if the company can get its act together. That doesn’t mean the shares can’t come back off, but the shares are up over $8.00 as of after-hours from the 52-week lows.
It was supposed to come out the same day as Hewlett Packard (HPQ) last week, but the SEC investigation on revenue recognition went formal and they decided to delay earnings. They aren’t even giving us the courtesy of a conference call. It is saying that the ongoing SEC investigation it will not file the Q2 filing nor will it be able to file this quarter’s 10-Q on time.
Here is the deal that investors going into the stock tomorrow or later have to swallow: Dell is being ambushed with problems; There have been exploding laptops and battery recalls, SEC inquiry, H-P regaining the number one position, Apple’s onslaught, crmmy customer service and support from Indian call-centers, Vista delays, a switch to a dual processor supplier now available (i.e. Intel/AMD); Rollins needs to go; it is going to now be two quarters late with SEC filings.
Jon C. Ogg
November 21, 2006
Top Gaining Stocks
Top Losing Stocks