Dell reports better-than-expected 52% profit rise

Dell reported last night that fourth-quarter profit rose a better-than-expected 52 per cent as it increased sales outside the…

Dell reported last night that fourth-quarter profit rose a better-than-expected 52 per cent as it increased sales outside the United States.

Dell said net income rose to $1.01 billion, or 43 cents per share, from $667 million, or 26 cents per share, a year earlier. Revenue rose 12.8 per cent to $15.2 billion from $13.5 billion.

Nonetheless, its shares dipped after it forecast slower revenue growth than Wall Street targeted.

"The guidance for the April quarter is disappointing," said Cindy Shaw, an analyst at Moors & Cabot Capital Markets who has a "hold" rating on the stock. "It suggests that revenue growth will slow further."

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Shares declined 0.9 per cent in extended trade after results were announced.

The world's largest PC maker reported adjusted earnings per share of 43 cents, two cents ahead of the analysts' consensus.

It increased its percentage of international revenue by 10 percentage points year-to-year, to a record 43 per cent of total fiscal fourth-quarter revenue. Non-US sales rose 3 percentage points from the previous quarter.

Sales to businesses, which account for about 85 per cent of revenue, grew 21 per cent, including a 41 per cent surge in revenue from data storage products.