Dell profit rises 12%; sales up 3.5% to $14.4 billion

[OhioChick]

Last Update: 5:49 PM ET Nov 21, 2006

SAN FRANCISCO (MarketWatch) -- Dell Inc. reported a third-fiscal-quarter profit Tuesday that was up almost 12% from a year ago, and shares rose as much as 11% in after-hours trading as the computing giant's earnings results beat the consensus forecast of Wall Street analysts.
Dell, however, called the results preliminary and subject to change as it faces an ongoing probe by federal securities regulators into its accounting practices.

DELL24.82, +0.17, +0.7%) said net income for the period ended Nov. 3 rose to $677 million, or 30 cents a share, from $606 million, or 25 cents, in the year-ago quarter. Analysts surveyed by Thomson First Call were expecting earnings of 24 cents a share.

Gross margins as a percentage of revenue climbed to 17% from 16.2% a year ago. Revenue rose 3.5% to $14.38 billion, up from $13.91 billion but slightly lower than the $14.44 billion expected by analysts.

Revenue looked to be in line with expectations, but earnings per share were "much better," said Shaw Wu, an analyst with American Technology Reseach. " it looks like margins bottomed last quarter and Dell is making progress." Wu hold a neutral rating on Dell's stock.

http://www.marketwatch.com/news/story/dell-profit-rises-12-delayed/story.aspx?guid=%7BFF24053F-0160-4A31-AA3A-614FC118F860%7D

[Deja Q]

1. More here

http://news.zdnet.com/2100-9584_22-6137736.html

The company's performance around the world was also a mixed bag. Shipments grew 23 percent in Asia, but increased just 9 percent in Europe, the Middle East and Africa. In addition, shipments fell 4 percent in the Americas, Dell's largest geographic segment by far. Revenue from the Americas was $9.2 billion, which was flat compared with last year.


also

http://blogs.zdnet.com/BTL/?p=3995

One bright spot was Dell's unit growth in China, which was up 33 percent. In India, unit growth was up 93 percent. Dell added it plans to open manufacturing plants in India next year. In the Asia-Pacific and Japan region overall revenue was $1.9 billion.

[OhioChick]

2. Thanks~

I was just reading that and ready to post. :)

[The Anti-Neo Con]

3. Dell is getting rich off all that cheap Indian labor.

Fuck them...I'll never buy one of their inferior pieces of crap.

[Nomad559]

5. By that reasoning

I can assume that Mac computers are crap because they are made by cheap labor In China.

:(

[The Anti-Neo Con]

6. I don't support any business that aggressively outsources if I can help it.

People I know with Dells have had their fair share of troubles with them.

I'm not sure on the reliability of Macs.

[Mudoria]

8. Using my 3rd Dell over the last 8 years

and never had any trouble with any of them.

[sandnsea]

4. Investor Class Society

Money will be earned in the US by investors and those who serve them.

[DainBramaged]

7. Yeah the rich get richer, go boys stash those profits offshore

We are grains of sand on the beach of capitalism and companies like Dell are the tractors with the rake on the back. We can do nothing but hope we get moved away from the tide.

:argh: