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