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17

Dell's Still Struggling: Fool by Numbers

On March 1, computer maker Dell (Nasdaq: DELL  ) released fourth-quarter earnings for the period ended Feb. 2.

  • The results are preliminary; the second- and third-quarter 10-Qs have yet to be filed because of the ongoing SEC probe into the company's accounting practices. That's the reason you won't see any balance-sheet or cash-flow info below.
  • An 18% decline in desktop unit sales contributed to the 5% drop in revenue. Top competitors such as Hewlett-Packard (NYSE: HPQ  ) -- which passed Dell in market share last year -- are licking their lips.
  • Management expressed disappointment with the results, and newly reinstalled CEO Michael Dell promised to "transform the company."
  • Nearly 3,000 investors have rated the stock in Motley Fool CAPS, where it sports a mediocre two stars out of a possible five.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$14,402

$15,183

(5.1%)

Net Profit

$673

$1,012

(33.5%)

EPS

$0.30

$0.43

(30.2%)

Diluted Shares

2,251

2,375

(5.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

17.1%

17.8%

(0.7)

Operating Margin

5.6%

8.2%

(2.7)

Net Margin

4.7%

6.7%

(2.0)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Related Foolishness:

Dell is a recommendation of Motley Fool Inside Value and Motley Fool Stock Advisor. Read all about it with a free 30-day trial to either service.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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Related Tickers

5/25/2012 2:39 PM
DELL $12.50 Up +0.05 +0.36%
Dell CAPS Rating: **
HPQ $22.19 Up +0.42 +1.91%
Hewlett-Packard Co… CAPS Rating: ***

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