Join        Login             Stock Quote

Dell (DELL) 4Q Earnings Drop 31 Percent, Yet Beat Estimates

 February 19, 2013 04:25 PM

(By Balaseshan) PC maker Dell Inc. (NASDAQ: DELL), which has agreed to be taken private in a $24.4 billion deal, reported a 31 percent drop in quarterly earnings due to lower revenue across its units and regions. Results exceeded market expectations.

On a non-GAAP basis, earnings per share declined 22 percent to 40 cents, yet exceeded market expectations by a penny. GAAP earnings dropped 31 percent to $530 million.

Revenue decreased 11 percent to $14.31 billion, beating consensus estimate of $14.12 billion. Region wise, Asia-Pacific and Japan revenue fell 9 percent. EMEA revenue dropped 14 percent, and Americas was down 10 percent.

[Related -Should You Buy HP's Stellar Rebound?]

In the preceding third quarter, Dell's earnings dropped 47 percent to $475 million on an 11 percent revenue decline to $13.72 billion.

Dell has been losing business to rival HP (HPQ) and Lenovo due to weak global PC shipments. Global PC shipments fell nearly 5 percent in the final three months of 2012 to 90.3 million units, indicating likely structural changes to the market rather than weak demand, according to market research firm Gartner.

Gross margin increased to 22.8 percent from 21.7 percent on a non-GAAP basis for the fourth quarter.

Given the company's announcement Feb. 5 of a definitive merger agreement to take Dell private, the company is not providing an outlook for its fiscal 2014 or Q1.

[Related -Why I Like Financial Stocks For 2014]

Dell's Founder, Chairman and Chief Executive Officer Michael Dell and Silver Lake, will acquire the PC maker for roughly $24.4 billion or $13.65 per share in cash. On February 11, Dell said it has considered an array of strategic alternatives to look for a superior offer before opting to go private.

Large shareholders such as T. Rowe Price Group Inc. (NASDAQ: TROW) and Southeastern Asset Management, who together own more than 10 percent of the stock, have decided to vote against the deal. Pzena Investment Management, who has about 1 percent stake, also gave a thumbs down to the offer.

The stock, which has been trading in a 52-week range between $8.69 and $18.36, ended Tuesday's regular session down 0.07 percent at $13.80.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageWatch This Alternative Investment for a Buy Signal

All major U.S. indices closed essentially unchanged last week except for the small-cap Russell 2000. While read on...

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.