Dell beat expectations on its earnings per share for its fiscal first quarter 2012 earnings, but its revenues did not.
Dell today reported revenue of $15 billion for the most recent quarter, up 1 percent from a year ago, but below the average of $15.4 billion Wall Street was looking for. Its earnings per share of 49 cents just beat the 48 cents that was anticipated. It's also a 188 percent increase over the 17 cents per share reported a year ago.
Dell's consumer PC business had a rough quarter. Revenue for the unit that makes laptops, desktops, and smartphones decreased 7 percent from a year ago to $3 billion. The reason? Demand for consumer PCs was "softer than expected." Note that that's the exact language Hewlett-Packard used this morning in its earnings report when explaining a 23 percent decrease in consumer PC revenue.
Meanwhile, its enterprise businesses are growing and now account for 20 percent of the $15 billion in revenue.
Enterprise solutions and services revenue increased 5 percent, and storage and networking increased 11 percent. Corporate refreshes of PCs for employees helped push revenue from large enterprise PC sales up 7 percent. Small and medium business revenue also saw an increase of 7 percent.
"We're off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving," said Chairman and CEO Michael Dell in a statement.
Looking ahead, Dell expects better-than-usual revenue next quarter, somewhere in the "mid-single digits." Specifically it says its local government and education customers will be spending more, and its small business, medium business, and consumer customers should see a boost from new Sandy Bridge-based PCs, and new laptop products arriving in the next few months.