RealTime IT News

Dell Delivers

Dell rebounded from its disappointing third quarter with a better than expected fourth quarter, but the company's guidance for the current quarter left a little to be desired.

Dell's earnings of 43 cents a share were up six cents from the year-ago quarter and two cents ahead of Wall Street estimates. Sales climbed 12.8% to $15.18 billion, topping $14.83 billion forecasts.

That said, Dell's first-quarter guidance was shy of analysts' estimates. Dell said it expects April quarter earnings of 39 to 41 cents a share on sales of $14.2-$14.6 billion, less than consensus estimates of 42-cent earnings and $14.76 billion in sales.

"We drove a better balance across all price points of our products and greater operational efficiencies this quarter, and performed at the high level of execution we expect for ourselves," CEO Kevin Rollins said in a statement. "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."

The company posted double-digit sales gains across all regions, and corporate sales grew faster than consumer sales in the U.S., where overall sales climbed 10%. Results were driven by strong mobility, storage, services and imaging products sales. Dell also benefited from an extra week in the quarter.

Dell shares were unchanged in late trading following a 0.6% gain during the day.

Stocks rallied again on Thursday, riding better than expected results from HP and Network Appliance .

The Nasdaq rose 18 to 2294, the S&P 500 climbed 9 to 1289, and the Dow rose 61 to 11,120. Volume declined to 2.25 billion shares on the NYSE, but rose to 1.99 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 19-10 on the Nasdaq. Upside volume was 80% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 219-13 on the NYSE, and 189-20 on the Nasdaq.

Applied Materials lost 2.4% on its results, and Expedia tumbled 18% on its numbers.

Emdeon gained 11% after saying it is exploring strategic options.

MRV jumped 12% on its results.

Google finally rebounded from its month-long drubbing, climbing 7%.