The report breaks out the operating performance, and it shows 6% growth from operations:
Second Quarter
Year to Date
(in millions, except per-share data)
FY'01
FY'00
Change
FY'01
FY'00
Change
Revenue
$7,670
$6,142
25%
$14,950
$11,679
28%
Operating Income
$736
$694
6%
$1,361
$1,294
5%
Net Income
$603
$507
19%
$1,128
$941
20%
Earnings Per Share
$0.22
$0.19
16%
$0.41
$0.34
21%
What P/E is appropriate for the investment gains that should continue for another 2 quarters? Certainly, less than the P/E on the operating performance. Also, there is discretion in the timing of the recognition of investment gains, and we would all like to know how much of the gains were recognized in the last week of the quarter.
Dell spent 80% (at a $40 average) of their net income buying back their shares to replace option exercised shares, and the average shares dropped 11 m, almost the full amount of the 12 m share buyback. |
