Dell Bounces Back In Profits
I was watching Dell’s stock closely last year and they weren’t doing too good. The company hung around $12 a share for the majority of Q4 last year. The company is really picking up now. Dell has just issued a statement that it has made a net income of $945M pr 49 cents a share which is quite a leap from $341M or 17 cents a share earlier in the year. The CEO and chairman of Dell, Michael Dell, claimed that the company was off to a solid start for the fiscal year of 2012 and that the substantial profit increase demonstrates that Dell’s strategy is working and the execution is improving.
From a consumer standpoint, I haven’t seen anything too new or innovative come from Dell’s labs, so this could just be a lucky quarter. Not to mention that the company was doing bad at the end of last year, so maybe they just finally got out of their slump.
Dell on the other hand believes that the success is due to improved profitability in end-user computing and better desktop and laptop offerings. I understand that it is common for a company to comment on its own success after a successful quarter but I’ve always thought it more wise to wait for a few successful quarters before commenting on an overall trend. That way, the company doesn’t look dumb if the next quarter is a poor one. I wish the best of luck to Dell!