Dell Authorizes $5 Billion for Stock Buybacks to Return Cash to Investors
Dell Inc. (DELL), the second-largest personal-computer maker, has added $5 billion to its stock- buyback program, citing a resurgence in its cash flow.
The repurchase adds to the $2.16 billion remaining from prior authorizations at the end of the fiscal second quarter, which ended in July, Dell said today in a statement. The Round Rock, Texas-based company spent $1.6 billion on buybacks through the first half of the year.
Dell has cut expenses and focused on more profitable customers and products, helping boost its cash and investments to a record $16.2 billion at the end of last quarter. In August, the company said operating income would increase by as much as 23 percent this fiscal year, excluding some items. That was up from a previous forecast of as much as 18 percent.
“Our efforts to streamline our operations and reduce costs have resulted in outstanding cash flow from operations,” Brian Gladden, chief financial officer, said in the statement. “We have the flexibility to continue making opportunistic share repurchases.”
Dell rose 19 cents, or 1.3 percent, to $14.38 at 4 p.m. in Nasdaq Stock Market trading. The shares have climbed 6.1 percent this year.
The company ranks second to Hewlett-Packard Co. in PC sales.
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