Friday July 12, 6:40 pm Eastern Time
FT.com
Dell raises sales and earnings guidance
By Tom Foremski in San Francisco
Dell Computer, the world's second largest PC maker, on Thursday raised its revenue and earnings estimates, indicating that it could be gaining market share from rivals.
The news boosted shares of the Texas-based computer maker, which closed up 4 per cent to $25.03 on Friday.
The upgrade could show that it is gaining market share from rival Hewlett-Packard, the world's largest PC maker, IBM and Gateway.
The PC market is currently in the doldrums as businesses delay upgrading older PCs. Advanced Micro Devices, Apple Computer, and Micron Technology, have reported slower sales in recent weeks.
Dell, which competes head-to-head with Hewlett-Packard, IBM and Gateway, said it expected about $100m in extra revenue in its second quarter to $8.3bn.
Earnings per share would be raised 1 cent to 19 cents, compared with its May 16 estimates. Its quarter ends August 2.
The company had revenues of $7.6bn and a net loss of 4 cents per share in the year-ago quarter.
The company said it believed "it is continuing to gain market share in the midst of weak overall demand." It added that the higher revenues are broadly based and driven by its US education, government and consumer business segments.
Dell was up $1.45 to $25.38 in extended hours trading in New York. This followed a 1 per cent rise by the end of regular trading.
The company has been aggressive in pushing its PCs with promotional programmes that offer customers a chance to win $50,000. Dell is hoping to win market share from its rivals as demand for PCs globally has been lower than expected.
With its online ordering and custom manufacturing, Dell has been the leader in reducing operating costs within the PC market. It is the only leading PC maker that has been making money in PCs as rivals struggle to curtail operating costs by outsourcing manufacturing and other actions.
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