Dell Beats Expectations, Posts Record Revenue

By Victor Godinez, The Dallas Morning News

Feb. 16–Dell Inc. reported fourth quarter results Thursday afternoon after the stock market closed that beat analysts’ expectations.The Round Rock-based computer maker posted record revenue of $15.2 billion and earnings per share of 43 cents.

The company had been expected to report revenue of $14.8 billion and earnings of 41 cents per share.

In the fourth quarter a year ago, Dell had sales of $13.5 billion and earnings of 37 cents a share.

More of Dell’s success is coming from outside the U.S., as that segment accounted for an all-time high of 43 percent of overall revenue, up from 40 percent in the previous quarter.

“Our success in countries such as China and Germany shows the Dell direct business model is preferred by customers in all regions and provides us with a unique advantage and opportunity for continued growth,” Kevin Rollins, Dell’s chief executive officer, said in a statement.

Shares of Dell edged up 7 cents during the day to close at $31.84 before the earnings announcement.

For the first quarter of fiscal 2007, the company expects revenue between $14.2 billion and $14.6 billion, with earnings per share between 39 cents and 41 cents.

E-mail vgodinez@dallasnews.com

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