Dell Tops Estimates, but Gross Margin Shrinks

February 18, 2010 at 2:33 pm PT

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.

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Tagged with: Barrons, Dell, digital, Eric Savitz, frontpage, hardware, PCs, shares, Tech Trader Daily

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