Corporate and Government Customers Double Dell's 3Q Earnings


Dell's (DELL) third-quarter profit more than doubled from a year earlier as demand for its computers from larger companies and governments offset the effect of tepid consumer growth. Shares rose in extended trading after the company beat Wall Street earnings estimates.

Net income was $822 million, or 42 cents a share, up from $337 million, or 17 cents, a year earlier, Dell said Thursday. Revenue jumped 19% to $15.4 billion.

The biggest revenue growth came from Dell's large enterprise unit, which surged 27% from a year earlier. Sales from governments, hospitals and other public entities increased 20%, while consumer revenue rose just 4%.

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Analysts expected the company to earn 32 cents a share on $15.74 billion in sales, according to a Thomson Reuters poll.

Improvements in Dell's core personal-computer business spelled good news for a company that has faced challenges in the mobile-device sector and other areas. In a regulatory filing Wednesday, Dell said that Ron Garriques, head of Dell's mobile operations, is leaving the company. Garriques runs the wireless business for both Dell's phones and tablet-style PCs. Neither Dell's Aero smartphone nor its Adamo mini-PC has sold well.

Dell has also been subject to Securities and Exchange Commission investigations that led to the departures of several of its executives. CEO Michael Dell himself was charged with bribery by the government as part of the Intel (INTC) probe, but has settled those charges. The company has also been accused of knowingly shipping tens of thousands of PCs with defects.

Still, the company's earnings results boosted its stock. Dell shares rose 6.1% to $14.70 by 4:30 p.m. Eastern time Thursday.

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