16:12 DELL Dell beats on top, bottom line, comments on Q2 outlook, ongoing investigation (26.91 +0.69)
Reports Q1 (Apr) earnings of $0.34 per share $0.08 better than the Reuters Estimates consensus of $0.26; revenues rose 2.7% year/year to $14.6 bln vs the $13.93 bln consensus. Briefing.com Note: $0.34 EPS actual includes $0.02 in costs associated with ongoing investigation, so upside EPS surprise may be greater. Co comments on outlook, "DELL operating margins will be under pressure sequentially in Q2. In the second quarter, operating margins will be under pressure sequentially as the company enters the seasonally slower quarter with elevated operating expenses and additional costs related to the ongoing investigations. In addition, results for the year could be affected by additional transformational actions, changing competitive dynamics, a more aggressive pricing environment and higher component costs in the second half of the year". Chairman of the Audit Committee comments on investigation, "We are continuing to move toward the conclusion of our investigation. We are working closely with management and our independent auditors to assess the accounting errors and control deficiencies that have been identified, and have met and will be meeting further, with the SEC to provide updates on the status of the investigation. Although this process has taken us longer than we would have liked, it is important to commit the time and resources required to ensure a thorough and comprehensive review and resolution of all identified issues and the implementation of appropriate remedial measures." |
