Dell (DELL) Disappoints Investors Again in Q2 With a Lower Outlook
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Price: $442.08 +1.68%
Revenue Growth %: +50.5%
Financial Fact:
Interest and other, net: -53M
Today's EPS Names:
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Revenue Growth %: +50.5%
Financial Fact:
Interest and other, net: -53M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Shares of Dell Inc. (Nasdaq: DELL) are getting hit after-hours Tuesday as decent second quarter earnings results were overshadowed by a miss on the top-line and a lowered outlook.
The PC and server giant reported that revenues fell 8 percent to $14.5 billion, missing the Wall Street consensus of $14.65 billion. In the all-important Enterprise Solutions and Service unit, sales rose 6 percent to $4.9 billion.
Non-GAAP EPS fell 7 percent to 50 cents, but beat the consensus estimate of 45 cents.
"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," said Michael Dell, chairman and CEO. "We're clear on our strategy and we’re building a leading portfolio of solutions to help our customers achieve their goals."
"Our performance in the second quarter provided another proof-point that our long-term strategy is right," said Brian Gladden, Dell chief financial officer. "We continued our progress in shifting the mix of our business to higher-margin enterprise solutions, led by solid growth in our server, networking, services, and Dell IP storage businesses.
"Growth in our PC business was challenging, as we saw a tough macroeconomic and competitive environment, and continued to focus on higher-value solutions in this business," Mr. Gladden said.
Looking ahead, Dell said it expects continued solid growth in Enterprise Solutions, Services and Software and also a challenging end-user computer environment in the second half of the year.
The company expects third quarter revenue to be down 2-5 percent from second-quarter levels. This would equate to revenues of $13.8-$14.2 billion, versus the consensus of $14.86 billion.
Dell is lowering full-year earnings outlook to "at least $1.70 per share," which compares to its prior guidance of "over $2.13" and the consensus of $1.91.
After falling 1.75 percent intra-day, shares of Dell fell another 3.2 percent after-hours to $11.95.
The PC and server giant reported that revenues fell 8 percent to $14.5 billion, missing the Wall Street consensus of $14.65 billion. In the all-important Enterprise Solutions and Service unit, sales rose 6 percent to $4.9 billion.
Non-GAAP EPS fell 7 percent to 50 cents, but beat the consensus estimate of 45 cents.
"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," said Michael Dell, chairman and CEO. "We're clear on our strategy and we’re building a leading portfolio of solutions to help our customers achieve their goals."
"Our performance in the second quarter provided another proof-point that our long-term strategy is right," said Brian Gladden, Dell chief financial officer. "We continued our progress in shifting the mix of our business to higher-margin enterprise solutions, led by solid growth in our server, networking, services, and Dell IP storage businesses.
"Growth in our PC business was challenging, as we saw a tough macroeconomic and competitive environment, and continued to focus on higher-value solutions in this business," Mr. Gladden said.
Looking ahead, Dell said it expects continued solid growth in Enterprise Solutions, Services and Software and also a challenging end-user computer environment in the second half of the year.
The company expects third quarter revenue to be down 2-5 percent from second-quarter levels. This would equate to revenues of $13.8-$14.2 billion, versus the consensus of $14.86 billion.
Dell is lowering full-year earnings outlook to "at least $1.70 per share," which compares to its prior guidance of "over $2.13" and the consensus of $1.91.
After falling 1.75 percent intra-day, shares of Dell fell another 3.2 percent after-hours to $11.95.
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