71% Growth in Q2 Earnings Fails to Impress Dell (DELL) Holders as Sales Miss
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Revenue Growth %: +50.5%
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Revenue Growth %: +50.5%
Financial Fact:
Selling, general, and administrative: 2.1B
Today's EPS Names:
EDXC, BICX, FBPI, More
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Dell (Nasdaq: DELL) shares have slipped more than 5 percent in Tuesday's post-market trading session as investors are showing clear disappointment with the PC-maker's latest quarter.
For the second quarter ended July 29th, 2011, Dell reported total sales of $15.66 billion, up about 1 percent from the $15.53 billion posted during the same quarter last year and up about 4 percent from the first quarter.
On a segment-by-segment basis, Dell's sales to its Large Enterprise unit rose 1 percent to $4.58 billion. Sales at the company's Public segment were down 3 percent to $4.46 billion and sales to its Small and Medium Business segment rose 5 percent to just under $3.71 billion.
Net income rose a very sharp 63 percent from $545 million during the year-ago quarter to $890 million. Profit was down about 6 percent compared to the $945 million issued during the first quarter of 2012.
Earnings per share moved from 28 cents last year to 48 cents in the most recent quarter, a 71 percent surge. Versus the first quarter, profit per share fell about 2 percent.
Analysts on the Street had been looking for Dell to report quarterly sales of $15.76 billion and EPS of 49 cents.
Chairman and CEO Michael Dell said, "We continue to see great momentum in the high-growth areas of our business, which is a direct reflection of the discipline and strong execution our global Dell team is applying to help solve real-world challenges for our customers. We’re creating efficiency across every step of the IT value chain and ultimately enabling all customers—from home users to large businesses and government organizations—to achieve the outcomes that matter most to them."
Dell said it expects to see third-quarter sales "roughly flat" versus the second quarter.
For its FY12, Dell now sees sales growth of about 1-5 percent, down from a prior growth estimate of 5-9 percent. The company's net income is expected to grow 17-23 percent over the upcoming year, up from previous guidance of 12-18 percent.
Dell shares last traded at $14.84.
For the second quarter ended July 29th, 2011, Dell reported total sales of $15.66 billion, up about 1 percent from the $15.53 billion posted during the same quarter last year and up about 4 percent from the first quarter.
On a segment-by-segment basis, Dell's sales to its Large Enterprise unit rose 1 percent to $4.58 billion. Sales at the company's Public segment were down 3 percent to $4.46 billion and sales to its Small and Medium Business segment rose 5 percent to just under $3.71 billion.
Net income rose a very sharp 63 percent from $545 million during the year-ago quarter to $890 million. Profit was down about 6 percent compared to the $945 million issued during the first quarter of 2012.
Earnings per share moved from 28 cents last year to 48 cents in the most recent quarter, a 71 percent surge. Versus the first quarter, profit per share fell about 2 percent.
Analysts on the Street had been looking for Dell to report quarterly sales of $15.76 billion and EPS of 49 cents.
Chairman and CEO Michael Dell said, "We continue to see great momentum in the high-growth areas of our business, which is a direct reflection of the discipline and strong execution our global Dell team is applying to help solve real-world challenges for our customers. We’re creating efficiency across every step of the IT value chain and ultimately enabling all customers—from home users to large businesses and government organizations—to achieve the outcomes that matter most to them."
Dell said it expects to see third-quarter sales "roughly flat" versus the second quarter.
For its FY12, Dell now sees sales growth of about 1-5 percent, down from a prior growth estimate of 5-9 percent. The company's net income is expected to grow 17-23 percent over the upcoming year, up from previous guidance of 12-18 percent.
Dell shares last traded at $14.84.
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