Dell Tops Estimates, but Gross Margin Shrinks

Dell (DELL) shares are trading lower after hours despite better-than-expected results for its fiscal fourth quarter ended January 29.

The PC maker posted revenue of $14.9 billion, up 11 percent from a year ago and 16 percent sequentially, and well ahead of the Street at $13.85 billion. Non-GAAP EPS of 28 cents a share beat the Street by a penny.

But the company reported gross margin the quarter of 16.6 percent, down from 17.3 percent in Q3, and 17.2 percent a year ago. The company said margins were pressured by seasonal strength in consumer demand, where the company generates lower margins than in the rest of its business.

Read the rest of this post on the original site