Dell profit beats estimates, but revenue misses
SAN FRANCISCO, March 1 (Reuters) - Dell Inc. (DELL.O: Quote, Profile , Research), the world's second-largest personal computer maker, on Thursday reported quarterly earnings per share that topped Wall Street's average estimate, though revenue was short of expectations.
Net income for Dell's fiscal fourth quarter ended Feb. 2 was $673 million, or 30 cents per share, and revenue was $14.4 billion. Analysts, on average, had forecast earnings per share of 28 cents and revenue of $14.7 billion, according to Reuters Estimates. The company had said in January it would likely miss analysts' average earnings estimates for the quarter.
Dell described the results as preliminary because it is reviewing its past accounting and may have to restate results, including the prior-year period. The Round Rock, Texas-based company said last year the Securities and Exchange Commission and federal prosecutors were investigating its accounting.
In January it brought back founder Michael Dell to replace Kevin Rollins as chief executive as the company struggled with slowing sales, shrinking profit margins, complaints of poor customer service and investigations into its accounting. Dell last year lost the top global PC market share spot to Hewlett-Packard Co. (HPQ.N: Quote, Profile , Research), which benefited by selling more notebook computers and printers to consumers.
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Dell's stock has fallen 22 percent in the past 12 months compared with HP's 16 percent gain. The stock trades at 17.7 times estimated fiscal 2008 earnings per share compared with the average multiple of 14.8 for companies on the Standard & Poor's 500 index.
SAN FRANCISCO, March 1 (Reuters) - Dell Inc. (DELL.O: Quote, Profile , Research), the world's second-largest personal computer maker, on Thursday reported quarterly earnings per share that topped Wall Street's average estimate, though revenue was short of expectations.
Net income for Dell's fiscal fourth quarter ended Feb. 2 was $673 million, or 30 cents per share, and revenue was $14.4 billion. Analysts, on average, had forecast earnings per share of 28 cents and revenue of $14.7 billion, according to Reuters Estimates. The company had said in January it would likely miss analysts' average earnings estimates for the quarter.
Dell described the results as preliminary because it is reviewing its past accounting and may have to restate results, including the prior-year period. The Round Rock, Texas-based company said last year the Securities and Exchange Commission and federal prosecutors were investigating its accounting.
In January it brought back founder Michael Dell to replace Kevin Rollins as chief executive as the company struggled with slowing sales, shrinking profit margins, complaints of poor customer service and investigations into its accounting. Dell last year lost the top global PC market share spot to Hewlett-Packard Co. (HPQ.N: Quote, Profile , Research), which benefited by selling more notebook computers and printers to consumers.
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Dell's stock has fallen 22 percent in the past 12 months compared with HP's 16 percent gain. The stock trades at 17.7 times estimated fiscal 2008 earnings per share compared with the average multiple of 14.8 for companies on the Standard & Poor's 500 index.
