Dell Computer Corporation has reaffirmed its financial guidance for its fiscal third quarter, saying it was winning new customers and successfully managing its operating expenses.
Dell said in mid-August it was targeting earnings of 15 cents to 16 cents per share on revenue of $7.2 billion to $7.6 billion for the third quarter ending November 2nd.
For the third quarter, analysts on average have expected Dell to report revenues of $7.27 billion and earnings of 15 cents per share, according to Thomson Financial/First Call.
Dell stock jumped in trading before the opening bell, rising to $22 in early trading on the Nasdaq, up from their close of $20.64 yesterday.
But Dell, which plans to announce its results November 15th, cautioned that one-third of its third quarter remained. The company overtook Compaq Computer this year as the largest personal computer maker.
Company's chairman and chief executive Mr Michael Dell said in a statement the company expects to make further share gains in all product categories, customer segments and regional markets during the current quarter.
The reaffirmation from Dell came a day after the head of Internet gear maker Cisco Systems said he was comfortable with analysts' estimates for first-quarter results. The statement boosted not only Cisco's stock but the whole sector.
Investors have battered technology stocks in recent weeks amid concerns that repercussions from the attacks of September 11th have shattered a fragile recovery in the ravaged industry.