The story of corporate America right now: Mediocre investment and hiring, killer earnings and killer margins.
That’s Dell for you.
The stock is off 7.5% after hours after missing on revenue, and beating on EPS.
And check out its outlook: When was the last time you saw a company hike its bottom line estimates while lowering its revenue outlook?
Based on consistent execution in the first half of the fiscal year, the continued management of lower-margin business and a positive mix shift to Dell intellectual property and higher-valued products, Dell is raising its non-GAAP operating income growth expectation for FY 2012 to 17-23 per cent year-over-year from 12-18 per cent. Based on strategic decisions to redirect resources from lower- to higher-value solutions and a more uncertain demand environment, the company also is revising its full-year revenue-growth outlook to 1-5 per cent from the previous range of 5-9 per cent. In the third quarter, Dell expects to see revenue roughly flat relative to Q2, which is in line with seasonality over the past two years.
Corporate America: Still amazing at squeezing water from the stone.