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Dell Second Quarter Earnings
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DELL
Dell (Nasdaq:DELL) announced its results for the most recent quarter on August 21, 2012. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Dell managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported adjusted net income of 50 cents per share versus the 45 cents per share estimate and revenues of $14.48 billion versus the $14.92 billion estimate. Revenue fell 7.5% from the same period last year. Revenue declined last quarter after shrinking 4% to $14.42 billion in the first quarter. Dell's net income for the second quarter fell 17.8% from last year's figures to $732 million. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 32.8% in the first quarter and 17.6% in the fourth quarter of the last fiscal year.
Management Quote: "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."
A Look Back: Net income has increased 0.8% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 63.3% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 56 cents a share to 49 cents over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $1.92 per share, the average estimate for the fiscal year has fallen from $2.12 90 days ago.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Surprising Earnings Results
The Numbers: Dell managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported adjusted net income of 50 cents per share versus the 45 cents per share estimate and revenues of $14.48 billion versus the $14.92 billion estimate. Revenue fell 7.5% from the same period last year. Revenue declined last quarter after shrinking 4% to $14.42 billion in the first quarter. Dell's net income for the second quarter fell 17.8% from last year's figures to $732 million. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 32.8% in the first quarter and 17.6% in the fourth quarter of the last fiscal year.
Management Quote: "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."
A Look Back: Net income has increased 0.8% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 63.3% from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 56 cents a share to 49 cents over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. At $1.92 per share, the average estimate for the fiscal year has fallen from $2.12 90 days ago.
by
Investopedia Staff
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