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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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.