Dell Q3 Profit Beats Estimate

Elena
22 Nov, 2006
New York City

The computer giant said that net income rose to $677 million, or 30 cents a share, up from $606 million, or 25 cents in the year-ago quarter, exceeding estimates of 24 cents a share. However, the computer giant called the results preliminary and subject to change due to an ongoing probe by federal securities regulators into its accounting practices. Dell shares jumped 9% in pre-open trading.

[R]8:15AM Dell reported Q3 earnings above estimates. The stock jumped 9%.[/R]
Dell Inc. ((DELL)) reported late Tuesday 12% profit increase in Q3 quarter profit, beating analyst expectations. The computer giant said that net income rose to $677 million, or 30 cents a share, up from $606 million, or 25 cents in the year-ago quarter, exceeding estimates of 24 cents a share. Gross margins as a percentage of revenue climbed to 17% from 16.2% a year ago. Revenue rose 3.5% to $14.38 billion, up from $13.91 billion but slightly lower than the $14.44 billion expected by analysts. Dell didn't give a forecast for its Q4 results.

The computer giant called the results preliminary and subject to change as it faces an ongoing probe by federal securities regulators into its accounting practices. Dell delayed its financial results almost a week because it said it had had to deal with an investigation by the Securities and Exchange Commission. Bear Stearns analyst upgraded Dell to outperform from peer perform, citing evidence of a turnaround and the company''s improved focus on profitability vs. growth. Dell shares jumped 9% to $27.05 in pre-open trading.


[R]7:30AM Asian stocks surged Wednesday, led by Japanese financials.[/R]
Asian markets finished higher on Wednesday. Tokyo''s 225-issue Nikkei Stock Average gained 180.09 points, or 1.1%, to 15,914.23. shares of Internet and telecom conglomerate Softbank jumped 8.4%, its first gain in six trading sessions. Shares of Mitsubishi UFJ , the largest bank in Japan by assets, rose 2.2% while lender Mizuho Financial Group advanced 2%. Department store group Mitsukoshi Ltd rose 3.4% while Fast Retailing operator of the Uniqlo retail chain, gained 1.5%.

The Hang Seng Index in Hong Kong rose 1.3% to end at 19,250.79. Hong Kong property developer Cheung Kong Holdings rose 2.9%. the China Enterprises Index, surged 3.4% to end 8,610.04, led by gains in property and banking shares. Mainland lender China Construction Bank rose 5.1% while China''s largest lending by assets Industrial & Commercial Bank of China.

Australia S&P/ASX 200 rose 1.6%, led higher by gains in BHP Billiton. The largest mining group in the world rose 2.9%, pacing gains in copper and petroleum prices. Elsewhere in Asia, Singapore Straits Times Index added 0.8%, Malaysia KLSE Composite rose 0.9%, and New Zealand NZX-50 Index closed 0.1% lower. Kospi in South Korea added 1.2% and Indonesia JSX Composite gained 1.1%. Shares listed in Shanghai wiped off earlier losses to trade higher in the afternoon, lifting the Shanghai Composite 0.2%.