Dell Beats Street On Business Sales, Stock Soars

Dell

Computer maker Dell reported record quarterly earnings after market close today, handily beating analyst expectations.

The company earned 45 cents per share ($822 million) on revenue of $15.4 billion. Consensus estimates were 32 cents per share on $15.7 billion in revenue. The income figure is more than double from last year’s $377 million, and revenue was up almost 20%. The stock is up 6% in after hours trading on the news.

Most of the gains came from Dell’s sales to businesses, particularly enterprises (revenue up 27% from last year) and small and mid-size business (up 24%). Profitability in the small-and-mid segment was particularly strong, with operating income of $391 billion, a record. However, revenue in the company’s consumer business was up only 3% from last year. That probably accounts for much the revenue shortfall versus expectations.

The strong numbers are the latest indication of a rebound in business IT spending. Microsoft’s third quarter earnings were similarly stronger than expected, boosted by strong purchases of Office 2010 and other business products.

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