Stocks to Watch: Dell, J.C. Penney, Autodesk
NEW YORK -- Dell
Dell's Enterprise Solutions group booked a solid increase in revenue during the quarter, while hardware sales were dismal.
The company posted adjusted earnings of 21 cents a share, falling short of analysts' estimates of 35 cents a share. Dell reported first-quarter revenue of $14.1 billion, a 2% decrease from the prior year, but higher than consensus expectations of $13.5 billion.
The Enterprise Solutions group's successful first quarter threw weight behind activist investor Carl Icahn's bid to overtake Silver Lake Partners and founder Michael Dell's $13.65 a share offer to take the PC maker private. The numbers highlighted Icahn's argument that Dell's bid sharply undervalued the company's potential to become a serious enterprise computing company.
Meanwhile, the poor performance in hardware sales during the quarter gave credence to Dell's argument that a turnaround can't occur under the harsh light of the public eye, where calls for spinoffs have grown louder.
The adjusted loss for the quarter totaled $289 million, or $1.31 a share, which includes charges related to the retailer's restructuring and management transition.
The retailer disclosed last week that total sales for the quarter fell 16.4% from last year to $2.64 billion. J.C. Penney also said comparable-store sales declined by about 16.6% during the quarter.
The retailer also lowered its revenue guidance for the year.
Adjusted earnings were 42 cents a share. Revenue fell to $570.4 million from $588.6 million a year earlier,
Analysts were calling for earnings of 45 cents a share on revenue of $583.6 million.
-- Written by Joseph Woelfel
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