Dell’s second quarter profit jumped 46%, on stronger sales of enterprise products and services, improved average selling prices and favorable component costs.
In the quarter, computer maker earned $733m, or 32 cents per share, compared to $502m, or 22 cents per share, a year ago. Sales rose 4% to $14.8bn. Quarterly report pushed dell’s share value up by 1% and closed up 60 cents, or 2.2 percent, at $28.46 on NASDAQ.
Quarterly results are much better to the expectations as market analysts were hoping earning of 30 cent a share. However, company isn’t satisfied with the performance. Company posted 6% operating profit margin, which is 0.5% lower to the previous quarter 6.5%.
Dell succeed to post a good results only after cutting its components prices, but still disk drives and microprocessors, crimping its profits. The report comes as Dell emerges from a yearlong internal investigation into accounting misconduct, this result definitely provide a relief to embattled company.
After facing four year long internal investigation into accounting misconduct, PC maker’s profit dip to record low, and to restate its position again it has introduced cost-reduction plan in which, in May company has announced to cut 10% of staff.
In the past period, all major PC makers profited from lower costs for computer components amid a supply glut, but now the scenario seems to change as companies are likely to increase their prices. Dell also changed its 22-year long strategy to sell computers directly to the customers, but now it started selling them through retailers like Wal-Mart.
Via: Forbes
