Wednesday, February 16, 2011

Dell (NASDAQ:DELL) Soars as it Blows Past Expectations

Dell Inc. (NASDAQ:DELL) shocked the market as it soared past expectations be a huge amount, as revenue exploded upward.

Leading the way for company were enterprise and services revenue, which rose 27 percent in the fiscal fourth quarter of the company.

Revenue in the quarter jumped to $15.7 billion, a five percent increase, while earnings came in at $0.53 a share, beating estimates by a whopping 16 cents a share. Analyst were looking for 37 cents a share.

Michael Dell, Chairman and CEO, said, “I’m very pleased with our fiscal year results and the strong performance we’re seeing in our commercial businesses. We remain focused on developing and acquiring new technologies and capabilities, and our IT solutions portfolio has never been stronger. Customers are now seeing Dell in a fresh light, and we’re heading into the new year with strength and optimism."

Dell gave 2012 guidance of revenue growth in a range of 5 to 9 percent and non-GAAP operating income growth of 6 to 12 percent.

With higher margins in their growing enterprise and services businesses, the company was able to increase margins to 21 percent in the quarter, and for full year to 18.5 percent.

Dell closed down Tuesday at $13.91, dropping $0.18, or 1.28 percent. After hours they were trading at $14.65, gaining $0.74, or 5.32 percent.

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