Dell Beats on Top Line, but Sales and Guidance Disappoint

Dell Inc. (NASDAQ: DELL) has reported its quarterly earnings and the results are not exactly driving the initial interest the way Michael Dell would probably want. The PC giant reported earnings of $0.50 in adjusted earnings per share and $14.5 billion in revenue. Thomson Reuters has a consensus of $0.45 EPS and revenues are expected to be $14.65 billion. WhisperNumber.com shows an unofficial whisper number (the better’s consensus) estimate at $0.48 in earnings per share.

For the coming quarter, Dell is looking for a sequential contraction of 2% to 5% and that would put the sales figure under the estimates as Thomson Reuters has estimates of $0.48 EPS and $14.86 billion in revenue.

The problems in the last quarter seem universal as even its the BRIC nations saw a sales decline of 15% and the company said that growth in the PC business is challenging. The company also cited tough macroeconomic conditions and a competitive environment. Its adjusted gross margin was 22.6%.

Dell closed down 1.75% at $12.34 and its 52-week range is $11.39 to $18.36. Shares are trading down about 3.9% at $11.86 in the after-hours session.

JON C. OGG