Earnings Roundup
Dell Inc. reported a decline in fourth-quarter profit after it lost market share to Hewlett-Packard Co.
Net income slipped to $334 million, or 17 cents a share, from $351 million, or 18 cents, a year earlier, the company said Thursday. Profit excluding some costs was 28 cents a share. Analysts predicted 27 cents, according to a Bloomberg survey.
Sales rose 16% to $14.9 billion, topping the average estimate of $13.8 billion.
Michael Dell, who reclaimed the chief executive’s job three years ago, has been diversifying away from low-priced computers and promoting sales of more profitable products. That led Dell to drop to No. 3 in the personal computer market last year behind Hewlett-Packard and Acer Inc. It also prompted the $3.9-billion takeover of Perot, expanding Dell’s services business.
“Dell continues to grow slower than its peers, meaning further market share losses,” said Shaw Wu, an analyst at Kaufman Bros. in San Francisco.
Dell shares fell 39 cents to $14.04 in late trading, after results were released. They had closed earlier at $14.43, up 32 cents.
DIRECTV
Merger charge leads to loss
DirecTV Inc. reported a fourth-quarter loss after absorbing a hefty merger charge. The nation’s largest satellite-TV operator also added 60% fewer new subscribers as discounted bundles from competitors and a weak economy took their toll on growth.
DirecTV has benefited from subscriber losses at cable companies but has faced aggressive marketing from satellite-TV operator Dish Network Corp., which has offered hefty promotions.
DirecTV lost $32 million, or 3 cents a share, compared with a profit of $332 million, or 32 cents, a year earlier. Excluding a $491-million pretax charge related to its merger with entertainment assets spun off by Liberty Media Corp. in November, DirecTV earned $454 million, or 48 cents a share. That’s 37% higher than earnings in the 2008 quarter.
Revenue rose nearly 13% to $5.98 billion.
Results beat the forecasts of analysts polled by Thomson Reuters, who expected adjusted earnings of 42 cents a share on revenue of $5.92 billion.
Shares of DirecTV, based in El Segundo, rose $1.31, or 4.1%, to $32.96.
CBS
Net income falls 57% as sales slip
Broadcasting company CBS Corp. said its net income fell by more than half in the holiday quarter as a gradual improvement in the advertising market was unable to lift overall revenue.
Net income fell to $59 million, or 9 cents a share. That was down 57% from a year earlier, when earnings were $136 million, or 20 cents.
Sales fell 1% to $3.50 billion, slightly higher than estimates of $3.47 billion.
Higher national ad sales and an improving market for local television ads were offset by declines in radio and outdoor advertising.
Adjusted for one-time items, earnings were 25 cents a share. That met the expectation of analysts polled by Thomson Reuters.
CBS shares fell 21 cents to $13.50 in after-hours trading following the announcement, after closing at $13.71, up 19 cents.
