Dell (DELL) Up Following Q1 Results, Sees PC Upgrades In 2010

Shares of Dell, Inc. (Nasdaq: DELL) are up 2% in the after-hours session after the PC maker reported slightly better-than-expected Q1 earnings, on slightly worse-than-expected revenues.

Dell reported Q1 EPS of $0.24, ex-items, 1 cent better than the analyst estimate of $0.23. Revenue for the quarter fell 23% from last year to $12.34 billion, versus the consensus of $12.66 billion. Operating income fell 54% from $899 million to $414 million. EPS, before items, fell 61% from $0.38 to $0.15.

On the conference call, CEO Michael Dell said he expects business customers to upgrade PCs in 2010 and said Windows 7 could be a catalyst for sales. Mr. Dell also said the company is intensifying cost cutting measures to hit $4 billion in savings by the end of fiscal 2011.

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