Increased shipments boosted Dell's second quarter profit by 28 percent, but revenue fell below Wall Street expectations as the company blamed...

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Increased shipments boosted Dell’s second quarter profit by 28 percent, but revenue fell below Wall Street expectations as the company blamed overly aggressive pricing of its low-end desktop and notebook computers.


Revenue at the world’s largest PC maker rose 15 percent to $13.43 billion from $11.71 billion last year.


The results reported yesterday matched analyst forecasts of 38 cents per share but fell below projected revenue of $13.71 billion, according to Thomson Financial.


Dell shares, which fell 15 cents to close at $39.58 yesterday, tumbled 7.7 percent, or $3.03 in late trading. Dell released the profit report after the market closed.


Dell said it achieved industry-record shipments of 9.1 million computer systems — including 2.7 million mobility products — and company-record revenue of more than $2 billion from software and peripheral products, including printers and displays.

Target

Decline posted,


but estimate beaten


Discount retailer Target yesterday posted a steep decline in second-quarter profit from a year-ago period inflated by a hefty gain, but strong sales carried the company’s results ahead of Wall Street estimates.


Net income fell to $540 million, or 61 cents per share, from $1.41 billion, or $1.53 per share, the year before, when the sale of its Marshall Field’s chain boosted earnings by $1.11 per share. On a continuing operations basis, Target’s earnings grew 50 percent over last year’s $360 million, or 39 cents per share.


Revenue in the latest quarter totaled $11.99 billion, up nearly 14 percent from $10.56 billion a year earlier, driven by a 6.7 percent rise in sales at stores open at least a year, as well as store expansions and higher credit sales.


Target’s quarterly results topped the average estimate for earnings of 59 cents per share and sales of $11.95 billion from analysts surveyed by Thomson Financial.


Target shares rose 11 cents to close at $55.65 yesterday.


DreamWorks

Loss not as bad


as analysts expected


DreamWorks Animation SKG swung to a loss in the second quarter, although results were better than analysts had expected.


The studio behind such animated hits as “Shrek” reported a net loss of $3.7 million, or 4 cents per share, compared with a profit of $146 million, or $1.89 per share, in the same period last year.


Revenue fell to $35.4 million from $300.3 million in the same period last year.


Analysts surveyed by Thomson Financial had expected a loss of 7 cents per share.


The company said its latest computer-animated release, “Madagascar,” has earned $432 million in worldwide box-office sales. Its next film, “Wallace & Gromit: Curse of the Were-Rabbit,” is set for Oct. 7.


Company shares rose 2.9 percent, or 69 cents, in after-hours trading yesterday after closing the regular session 33 cents higher at $24.11.


Compiled from The Associated Press