Dell 4Q Net Handily Tops Expectations, Shares Rise

By FOXBusiness

Shares of Dell Inc. (NASDAQ:DELL) jumped more than 6% in late trading Tuesday after the company weighed in with earnings that easily topped analyst predictions on the bottom line.

The PC-maker said net income soared nearly 200% to $927 million, or 48 cents a share, compared with year-ago profit of $334 million, or 17 cents a share. On an adjusted basis, earnings rose 89% to 53 cents a share, up from fourth-quarter adjusted earnings of 28 cents a share, in fiscal 2010.

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Revenue rose 16%, but still came in slightly below expectations, at $15.69 billion, compared with year-ago revenue of $14.9 billion.

Analysts had predicted earnings of 37 cents on revenue of $15.72 billion, according to a poll by Thomson Reuters.

Gross margin rose to 21% for the quarter, due to “record profitability” in the company’s enterprise solutions and services business, commercial execution that was strong and “lower component costs.”

Large enterprise and small and medium business revenue rose 12% compared with the year-ago quarter, to $4.7 billion and $4 billion, respectively. Public revenue also rose 4% during the quarter, but consumer revenue slipped by 8%, year-over-year, as a result of last year’s boost from a strong Windows 7 launch, the company said.

"I'm very pleased with our fiscal year results and the strong performance we're seeing in our commercial businesses,” said Michael Dell, chairman and chief executive officer, in a statement. “We remain focused on developing and acquiring new technologies and capabilities, and our IT solutions portfolio has never been stronger."

The Texas-based tech company forecast fiscal 2012 growth in operating income between 6% and 12%, with revenue growth between 5% and 9%.

Dell shares fell 18 cents, or 1.3%, on Tuesday during the regular session, closing at $13.91 a share. The stock jumped 89 cents in after-hours trading upon the release of results.

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