Dell reported better-than-expected third quarter earnings, no revenue growth, and provided an anemic revenue growth picture for the fiscal year.
The PC maker reported fiscal third quarter earnings of $893 million, or 49 cents a share, on revenue of $15.36 billion, flat with the same quarter a year ago. Non-GAAP earnings were 54 cents a share.
Wall Street was expecting non-GAAP earnings of 47 cents a share on revenue of $15.65 billion.
As for the outlook, Dell said its operating income targets for the fiscal year---17 percent to 23 percent growth---will be met, but revenue growth will be sluggish. The company said:
Given the uncertain macroeconomic environment and complexity in working through the industry-wide hard drive issue, the company is trending to the lower end of the range of its revenue outlook of 1 to 5-percent full fiscal-year growth.
Dell's outlook was largely expected. Analysts predicted that Dell may take its lumps in the fourth and first quarters due to supply chain issues. See: Dell's third quarter: All eyes on the supply chain
CEO Michael Dell said that the company is focused on growing its enterprise storage, server and networking business as well as moving toward on-demand software. The company is posting double-digit growth rates in emerging markets and its enterprise business and investing in research and development.
"We’re now investing in research and development activities at almost a billion-dollar annual run rate and our earnings per share is up 86 percent over the last 12 months," said Dell.
By the numbers: