Dell Reports Q2 09 Financials, Edges Estimates, Stock Surges 6.71%

3Sep/090

Dell Reports Q2 09 Financials, Edges Estimates, Stock Surges 6.71%

Dell reported a Q2 09 year-over-year revenue drop of 22% and profit decline of 23% coming in slightly ahead of analyts estimates. The stock soared 6.71% during reluguar trading hours and remains flat in the after hours market.

Outlook quote form the Dell press release: "In the third quarter, the company expects seasonal demand improvements from the Consumer and U.S. federal government businesses, but the quarter is also generally a period of slower demand from large commercial customers in the U.S. and Europe. Dell believes a refresh cycle in commercial accounts is more likely to occur in 2010, with IT spending improving first in the U.S. The company continues to see pressure in the form of component costs and areas of aggressive pricing in the near term, and continues to take actions to offset these items. The company will continue to focus on implementing cost improvements and strategic investments to improve operations for the long term."

Conclusion, like most large US tech vendors Dell beats estimates and forsees modest demand for the balance of 2009 in its consumer and government markets. Commercial market demand, which in large part will be driven by Windows 7 OS and laptop-PC system upgrades are likely not to occur until 2010. Visit Dell's stock performance via CNBC: http://data.cnbc.com/quotes/DELL