Dell (Nasdaq: DELL) announced its results for the most recent quarter on May 22, 2012. Dell is a technology company that offers desktop PCs, software and peripherals, servers, and networking and storage services to customers worldwide.Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability.
SEE: five Tricks Companies Use During Earnings Season
Dell fell short of estimates with adjusted net income of 43 cents per share and revenues of $14.42 billion. Analysts were expecting adjusted net income of 46 cents per share and revenues of $14.92 billion. Revenue fell 4% from the same period last year. The company's net income for the quarter fell 32.8% to $635 million. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 17.6% in the fourth quarter of the last fiscal year.
"We're committed to continuing our strategy to re-shape Dell's business as an end-to-end IT provider," said Michael Dell, chairman and CEO. "We saw continued progress in our first quarter with the innovative IT solutions we're providing - notably our latest Dell servers, storage, networking and services that deliver customers enhanced productivity.
"We continued to shift the mix of our business during a challenging environment," said Brian Gladden, Dell chief financial officer. "Our enterprise solutions and services businesses now account for 50 percent of our gross margin, and we'll continue to make the necessary investments to maintain our progress."
A Look Back:
Net income has increased 39.7% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.
For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the second quarter is 51 cents per share, up from 50 cents 90 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $2.11 per share, a rise from $2.05 90 days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)