Dell (DELL) Reports 52% Surge in Q1 Profit But Investors Selling the News

Dell Inc. (NASDAQ: DELL) said Thursday that it saw a 52 percent jump in quarterly profit, bolstered by strong demand for the company’s personal computers and servers. The company also said that it is expecting softer demand in the second and third quarters from larger commercial customers, pushing shares down more than 5 percent in extended trade.

“Our strategy and the significant investments we’re making to enhance our capabilities are providing more of the standards-based, flexible solutions that provide customers the highest value,” Michael Dell, chairman of the board and chief executive officer. “These efforts are driving renewed Dell growth.”

The world’s third largest maker of computers reported first-quarter earnings of $441 million or 22 cents per share, up from $290 million or 15 cents per share in the same quarter last year. Excluding one-time items, Dell earned 30 cents per share in the three month period ended April 30, 3 cents better than the market consensus of 27 cents per share.

Revenue for the Round Rock, Texas-based company rose 21 percent to $14.9 billion, ahead of the analyst estimate of $14.3 billion.

“This quarter was highlighted by good execution in an improving economic environment,” Said Brian Gladden, Dell’s chief financial officer. “We feel good about the growth across our commercial business as it approaches nearly $50 billion in revenues. We will continue to make investments in our enterprise solutions throughout the year.”

UPDATE: Click here to see some highlights from Dell's Q1 conference call.

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