Recovering Dell Surprises Analysts

The recession has taken an especially severe toll on computer makers and other technology companies as their main customers, corporations, have had to cut back on technology spending. However, one computer company, Dell, has posted surprisingly strong second quarter results that hint at an imminent recovery in sales as more companies become able to upgrade their computers once again.
 
Today, Dell reported profits of $472 million, or 24 cents a share, compared to $616 million in profits last year, marking a 23 percent decline over the year. However, excluding the costs associated with putting its recovery mechanisms in place, Dell reported profits of 28 cents a share, which drastically beats the average analyst estimate of 23 cents a share.
 
Dell anticipates that the advent of various new technologies from computer giants like Intel and Microsoft will encourage more companies to upgrade their PC fleets, translating to revenue for Dell and other computer makers. Despite the strain that the recession has placed on Dell, it is still one of the country’s top computer makers and it hopes to maintain its position until the recession has run its course.

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