Dell Inc., the second largest computer manufacturer in the world, presented on Thursday to the expected higher earnings, driven by strong demand and lower operating costs.
The company shares increased almost 8 per cent in the operations after the closing of the market following the results.
“The rise, I believe, was due mainly to the repurchase of shares and income slightly higher,” said Shannon Cross, analyst at Cross Research. “Gross margin is online,” he added.
“Reducing costs Dell is starting to benefit margins,” said Cross. “Now the company needs to show that it can maintain and gain market share beyond just filling the channels take advantage of its retail partners,” he added.
The net gain from Dell in the three months ended May 2 was $ 784 million, or 38 cents per share, which compares with 759 million, or 33 cents per share, in the same period a year earlier.
Sales rose 9 percent to 16,000 million dollars.
Analysts were expecting on average a net gain of 33 cents per share on revenues of 15,700 million dollars in the fiscal first quarter, according to the average expectations of Wall Street according to Reuters Estimates.
Dell said that shipments of goods grew by 22 percent in the quarter, driven by a 43 percent increase in unit sales of laptop computers.
The Financial chairman Don Carty, told reporters in a conference call that he expects the company to continue to grow faster than the industry in general and enjoy increased revenue, profitability and cash flow.
Dell, which has headquarters in Round Rock in Texas, also cut 3,700 jobs in the quarter reported, bringing the total reduction in payroll to 7,000 jobs over the past year, close to its goal of 8,900.
The company, which in recent quarters made a strong campaign to sell PCs through retailers, said that the personal computer unit released in the quarter grew more than twice the pace of industry.
“We are running all points of our strategy to generate growth in every product category and in every part of the world,” said chairman and CEO Michael Dell said in a statement.
Shares of Dell scalability by 8 percent to 23.55 dollars in electronic transactions, after climbing 12 cents to close at 21.81 dollars in regular session on the Nasdaq.
Dell’s shares have risen nearly 10 percent over the past three months, compared with a fall of about 2 percent of its rival Hewlett-Packard Co. over the same period, and are just behind the increase of 11 percent the Nasdaq.
