PC maker Dell Inc. (DELL) said late Thursday that its second quarter profit fell 23% from last year, but results still beat expectations, sending its stock higher.
The Round Rock, Texas-based company reported second quarter net income of $472 million, or 24 cents per share, down from $616 million, or 31 cents per share, in the same quarter last year. Excluding one-time charges, adjusted profit was 28 cents per share.
Sales plunged 22% from last year, to $12.8 billion.
On average, Wall Street analysts expected a lower profit of 23 cents per share on smaller revenue of $12.6 billion.
Dell said that shipments of PC's to consumers rose 17% from last year, but revenue in that category fell 9% due to lower prices. Corporate sales, in contrast, plummeted 32% from last year to $3.3 billion.
Dell shares rose 80 cents, or +5.1%, in morning trading Friday.
The Bottom Line
Shares of DELL are off 52-week highs of $25 a share. The stock has technical support in the $12 price area. If the shares can continue this morning's momentum, we see overhead resistance around the $17-$19 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.
Dell Inc. (DELL) does not currently pay a dividend.
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