Dell post strong earnings, jump 10 percent

Dell had a good day yesterday, they jumped 10 percent in trading after posting earnings which beat analyst's predictions.

Bloomberg have reported that Profit excluding certain items was 45 cents a share in the fiscal third quarter, Round Rock, Texas-based Dell said in a statement yesterday. That topped the 32-cent average of estimates in a Bloomberg survey.

Dell have been supported by dropping prices for computer parts and spending from businesses who are updating aging servers and workstations. Dell also held the line on price cutting to preserve profit margins. Aaron Rakers, an analyst at Stifel Nicolaus & Co said “They’ve put in place a little more discipline, Hopefully that discipline can be sustained as we move forward.”

Dell climbed 32 cents to $13.67 on the Nasdaq Stock Market.

Michael Dell said on a call with analysts that Windows 7 updating is helping them sell hardware. “The refresh cycle is very much in full bloom,” he said on the call.

Their sales rose 19 percent to $15.4 billion which is a very healthy figure indeed, although they did miss the average projection of $15.7 billion.

Kitguru says: A strong showing from Dell, hopefully they can maintain it in 2011.

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