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Earnings Analysis: 
Dell Earnings Increase
Author: George Shopov
123jump.com



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Dell Inc., the world's top personal computer maker, posted Thursday a 25% jump in its quarterly earnings, boosted by record sales. The results matched Wall Street's projections.

 
Dell Inc. (DELL: chart) reported Thursday that its quarterly earnings increased 25% from a year ago, driven by record sales. The world's largest personal computer maker said its net profit came to $846 million, or 33 cents a share, in the third quarter of fiscal 2005, up from a net profit of $677 million, or 26 cents a share, last year. The earnings matched Wall Street’s consensus estimate. For the quarter ended October 29, Dell announced revenue of $12.50 billion, which represents an 18% growth from year-earlier revenue of $10.62 billion. The company attributed the results to market share gains in Europe and Asia and lower component costs. Round Rock, Texas-based Dell said third-quarter shipments in Europe, Middle East and Africa jumped 31%, with server shipments in the region climbing 24%. Shipments in Asia-Pacific and Japan increased 25% over the prior year. Revenue from enterprise systems in the region was up 27%.

For its fourth quarter, Dell forecast earnings of 36 cents per share, on revenue of $13.5 billion.

Dell shares gained 40 cents on Thursday to $37.25. The stock rose 2.07% to $38.02 in after-market trade.

Target Corporation (TGT: chart) announced before the bell Thursday that its quarterly income surged 78%, fuelled by a gain from the sale of its Mervyn's department store chain and stronger revenue. The U.S. second-largest discount retailer turned in net earnings of $537 million, or 60 cents per share, for the third quarter of fiscal 2004, compared with earnings of $302 million, or 33 cents per share, for the same quarter a year earlier. Excluding items, earnings from continuing operations totaled $330 million, or 37 cents per share, for the quarter ended October 30, up from $271 million, or 30 cents per share, in the 2003 equivalent. The results were a penny short of the average analysts’ estimate. Minneapolis, Minnesota-based Target recorded revenue of $10.9 billion in the third quarter, an 11% increase from year-ago revenue of $9.8 billion. Same-store sales edged up 4.5% from last year.

The stock slipped 0.22% to $50.77 at market close Thursday. Company shares edged up 8 cents to $50.85 in the extended session.

Agilent Technologies, Inc. (A: chart) said Thursday that its fourth-quarter net income soared to $74 million, or 15 cents per share, from year-earlier net income of $13 million, or 3 cents per share. The Palo Alto, California-based manufacturer of electronic test and measurement products said its profit before items totaled $153 million, or 30 cents per share, for the quarter ended October 31, just missing the mean analysts’ forecast of 31 cents per share. The company attributed the results to higher revenue, which rose to $1.82 billion from $1.68 billion.

Company shares rose 2.51% to close Thursday at $25.68. The stock shed 80 cents to $24.88 in after-hours trading.

BEA Systems, Inc. (BEAS: chart) of San Jose, California, posted Thursday higher quarterly income, as growth in services revenue helped offset declining license revenue. The software firm turned in third-quarter earnings of $33.5 million, or 8 cents per share, compared with earnings of $29 million, or 7 cents per share, a year ago. Total revenue in the quarter edged up 5% to $264.4 million from $252.1 million, for the same period in the previous year.

The stock closed Thursday at $8.19, up 8 cents, or 0.99%. BEA shares were up 2.08% to $8.36 in after-market trade.

Kohl's Corporation (KSS: chart) on Thursday rolled out a third-quarter net profit of $143.8 million, or 42 cents per share, a 19% increase from $121.2 million, or 35 cents per share, generated a year earlier. The Menomonee Falls, Wisconsin-based retailer cited fewer markdowns and solid sales of new clothing lines as main factors for the improvement. The third-quarter earnings met analysts’ expectations. Quarterly sales advanced 14.6% to $2.74 billion. Same-store sales inched up 1.2% from last year.

Company shares gained $1.00 on Thursday to $53.20. The stock dropped 17 cents to $53.03 in extended-hours trading.

Tiffany & Co. (TIF: chart), the New York-based jeweler, announced Thursday that its quarterly profits slumped 26%, hurt by weak sales in Japan and higher precious metal and diamond costs. The company said it earned $20.81 million, or 14 cents per share, in its fiscal third quarter, down from $28.03 million, or 19 cents per share, in the 2003 corresponding quarter. Analysts had predicted a profit of 19 cents per share, on average.

The stock plunged 5.73% to $30.29 at market close Thursday.

Urban Outfitters, Inc. (URBN: chart) reported Thursday that its third-quarter income surged 85% to $26 million, or 31 cents per share, compared with income of $14.1 million, or 17 cents per share, for the prior-year equivalent. Analysts expected the retailer to earn 30 cents per share. The Philadelphia, Pennsylvania-based company attributed the results to increased same-store sales and fewer markdowns. Quarterly sales soared 52% to $216.4 million from $142.3 million.

Company shares slipped 1.57% to close Thursday at $44.50. The stock gained 50 cents to $45.00 in extended trade.

BASF AG (BF: chart) posted Thursday quarterly earnings that nearly tripled from last year, bolstered by surging sales. The Germany-based world’s top chemical company announced net profits of €337 million ($418.5 million) for its fiscal third quarter, in contrast to net profits of €120 million, for the 2003 comparable period. BASF recorded sales of €9.3 billion ($11.5 billion) in the quarter, a 20% rise over the year-ago quarter.

The stock closed Thursday down 89 cents, or 1.35%, at $65.15.

Pixar Animation Studios (PIXR: chart) of Emeryville, California, said Thursday that its quarterly profits shot up 70%, on higher home video and animation software sales. The maker of 'Finding Nemo' and 'Toy Story” posted net income of $22.4 million, or 38 cents per share, for its third quarter, against net income of $13.2 million, or 23 cents per share, in the 2003 equivalent. Quarterly revenue advanced to $44.5 million from $30.2 million. Pixar said lower marketing costs for 'Nemo' videos and a reduction in its effective tax rate also helped lift its profits.

Pixar shares climbed 3.47% to $79.94 at market close Thursday. The stock gained $3.06 to $83.00 in after-hours trading.
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