Dell soars on job cuts, earnings

Shares jump after No. 2 PC manufacturer says it will cut its staff by 10 percent; earnings and sales beat forecasts.


NEW YORK (CNNMoney.com) -- Shares of Dell jumped Friday, a day after the No. 2 PC maker reported better-than-expected sales and earnings and said it would cut its staff by 10 percent during the next 12 months.

Dell (up $0.96 to $27.87, Charts, Fortune 500) shares rose 3.6 percent in early session trading on the Nasdaq.

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A spokesman for Dell said the job cuts would amount to about 8,800 positions. Dell currently employs 88,000 people worldwide.

The computer maker on Thursday reported net income of $759 million, or 34 cents a share, for its fiscal first quarter ended May 4, compared with $762 million, or 33 cents, a year earlier.

Analysts surveyed by Thomson Financial expected earnings of 26 cents.

Revenue grew about 2.8 percent to $14.6 billion versus forecasts of $13.9 billion. Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.