Dell profits jump 29 percent

August 12, 2004

NEW YORK (CNN/Money) - Dell Inc. reported solid gains in second-quarter profits and sales Thursday thanks to strong demand for personal computers and servers, news that might reassure a jittery market reeling from an earnings warning by Dell rival Hewlett-Packard earlier in the day.

The Round Rock, Texas-based company posted net income of $799 million, or 31 cents a share, a 29 percent increase from earnings of $621 million, or 24 cents a share a year ago. The results were in line with consensus estimates.

Dell raised its profit target last month. Prior to that, analysts had been expecting earnings of 29 cents a share, according to First Call.

Sales came in at $11.7 billion, up 20 percent from $9.8 billion in the same period last year and also matching Wall Street forecasts.

Shares of Dell (DELL: Research, Estimates) slipped about 1 percent, to $33.12 in regular trading on the Nasdaq Thursday. The stock, trading just 10 percent below its 52-week high, has held up much better than many of its peers during the tech sector's sell-off in the past month and a half.

Home Loans Articles, Mortgage Loans Articles, Financial News