Dell (DELL) Issues Mixed Q3 Results; 'Industry-Wide Hard Drive Issue' Weighs on Sales Outlook
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Price: $442.08 +1.68%
Revenue Growth %: +50.5%
Financial Fact:
Income before income taxes: 219M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Revenue Growth %: +50.5%
Financial Fact:
Income before income taxes: 219M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Shares of Dell (Nasdaq: DELL) are down very modestly after hours Tuesday following mixed third-quarter 2012 results and a somewhat concerning outlook.
Net income rose 8.6 percent to $893 million, or 49 cents per share, a 17 percent jump from 42 cents reported during the same quarter last year. Adjusting for certain one-time items, earnings were a more robust 54 cents per share.
Revenue was unchanged from the year-ago quarter at about $15.37 billion.
The Street was looking for earnings of 47 cents per share on revenue of $15.65 billion.
Dell reported Enterprise Solutions and Service revs were $4.7 billion in the period, and accounted for 31 percent of total sales. By itself, large enterprise revs rose 4 percent to $4.5 billion.
International sales rose 11 percent in the quarter, with the biggest percentage increase reported in China at 23 percent. International accounted for 29 percent of overall revs, up from just 13 percent in the same period last year.
"We’re now investing in research and development activities at almost a billion-dollar annual run rate and our earnings per share is up 86 percent over the last 12 months," commented CEO Michael Dell.
Dell offered a mixed outlook. While FY12 operating income is expected to exceed the company's prior guidance range of 17-23 percent growth, Dell also said sales growth is trending toward the lower end of the 1-5 percent range. Dell attributes the weaker-than-expected sales guidance to "the uncertain macroeconomic environment and complexity in working through the industry-wide hard drive issue..."
Net income rose 8.6 percent to $893 million, or 49 cents per share, a 17 percent jump from 42 cents reported during the same quarter last year. Adjusting for certain one-time items, earnings were a more robust 54 cents per share.
Revenue was unchanged from the year-ago quarter at about $15.37 billion.
The Street was looking for earnings of 47 cents per share on revenue of $15.65 billion.
Dell reported Enterprise Solutions and Service revs were $4.7 billion in the period, and accounted for 31 percent of total sales. By itself, large enterprise revs rose 4 percent to $4.5 billion.
International sales rose 11 percent in the quarter, with the biggest percentage increase reported in China at 23 percent. International accounted for 29 percent of overall revs, up from just 13 percent in the same period last year.
"We’re now investing in research and development activities at almost a billion-dollar annual run rate and our earnings per share is up 86 percent over the last 12 months," commented CEO Michael Dell.
Dell offered a mixed outlook. While FY12 operating income is expected to exceed the company's prior guidance range of 17-23 percent growth, Dell also said sales growth is trending toward the lower end of the 1-5 percent range. Dell attributes the weaker-than-expected sales guidance to "the uncertain macroeconomic environment and complexity in working through the industry-wide hard drive issue..."
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