Computer giant Dell raised its earnings guidance for the second quarter, citing better results from operations and a lower global tax rate.
The company said Friday it expects to earn 31 cents a share in the quarter ending July 30, an increase of 29 percent from a year ago and two cents per share better than initial guidance.
Analysts surveyed by Thomson First Call had expected earnings of 29 cents a share for the quarter.
Dell shareholders are meeting at the Austin Convention Center Friday for the company's annual meeting to find out what company executives have in store for the coming year.
Company officials said in a statement in advance of the meeting that higher operating profitability is expected to produce per-share earnings of 30 cents, with the balance of the guidance increase attributable to a further decline in the manufacturer's global tax rate.
The company said it still expects second-quarter revenue of $11.7 billion and a second-quarter tax rate of 24 percent. That brings the average rate for the first half of the year to 26 percent, which is consistent with current expectations for all of fiscal 2005, given continued strong growth in business outside the United States, the company said.
Dell is expected to report second-quarter earnings on Aug. 12.
Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.