Dell (DELL) this afternoon reported fiscal Q1 revenue short of analysts’ estimates, but delivered adjusted EPS well ahead, and offered a better-than-expected outlook for the current quarter’s revenue growth.
Revenue rose 1%, year over year, to $15.02 billion from $14.87 billion a year earlier, yielding EPS of 55 cents.
Analysts had been modeling $15.4 billion in revenue and 44 cents EPS.
The company reaffirmed an expectation for full-year revenue growth of 5% to 9%, versus the 5% consensus. For Q2, Dell sees revenue growth “in the mid-single digits” compared to Q1, which the company noted would be above its normal sequential seasonal growth of 2% to 3%.
Dell said it expects spending by governments to improve, better-than-average seasonality in small and medium business, and education customers, and a “solid” back-to-school season. The timing of Dell’s offerings based on Intel’s (INTC) “Sandy Bridge” chips will help with small business and consumer sales, the company said, as will a refresh of its “XPS” product line.
Consumer revenue declined 7% to $3 billion, Dell said, with softer-than-expected demand. Public revenue was down 2%, large enterprise revenue was up 5%, and small and medium business revenue was up 7%.
Dell will hold a conference call with analysts at 4 pm, Central time, 5 pm, Eastern, which you can catch here.
Dell shares were halted just before the release. Apparently, the stock is to resume trading at 4:20 pm, Eastern.
Update: DELL has resumed trading and is now up 81 cents, or 5%, at $16.69.
No doubt, the rough outlook by Hewlett-Packard (HPQ) this morning may have some folks breathing a sigh of relief, and perhaps even shifting some money around. HP shares, I should note, are up 3 cents in late trading.
Article courtesy of Tech Trader Daily