Dell more than doubled its third quarter profits, it said last night, prompting the computer company's shares to rally more than 3% in pre-market trading on Friday.
For the third quarter, net income was $822 million, or $0.42 per share, up from $337 million, or $0.17 per share, in the year-ago quarter.
Excluding one-time items, adjusted profits for the quarter were $875 million, or $0.45 per share, representing an approximate 95% increase over the year earlier period.
The results toppled over analyst earnings estimates of $0.32 per share.
Revenue in the period jumped 19% year-over-year to $15.4 billion, as sales from the company's commercial segments showed strong growth.
Revenue from large enterprises came in at $4.3 billion - up 27% from a year ago - and enterprise services and solutions sales rose 25% to $1.7 billion. Public revenue, or sales from government agencies and other public sector organizations, grew by 20% to $4.4 billion.
This suggests that large corporations and government businesses are increasing their spending budgets as the economy slowly recovers.
Dell's new virtual integrated system also helped its top line, as the services help customers transition from their existing technologies to cloud-like models, as an increasing number of companies make the switch to more cost-efficient cloud-computing.
Small and medium business revenue also improved by 24% to $3.7 billion, while consumer sales increased slightly by 4% to $3 billion. Despite muted consumer demand, the company said the segment improved and managed to break-even in profits.
Regionally, sales grew significantly across the board, with revenue in Brazil, Russia, India and China (BRIC) rising 30% overall, led by a 55% increase in India.
Dell said that it expects to see continued growth in enterprise products and services as companies spend more. The company anticipates full-year revenue to track toward the mid-point of the 14 to 19% range set earlier in the year.
At quarter-end, Dell had $14 billion in cash and investments.
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