Sterne Agee Raises Estimates On Dell

According to Sterne Agee, Dell (NASDAQ: DELL) estimates are raised.

Sterne Agee said that it applauds DELL for posting an unexpectedly strong April quarter in which it handily beat EPS and gross margin expectations despite a $400 million top-line miss. “Gross margin came in at 23.4%, up a remarkable 580 basis points Y/Y, deflecting concerns with the unfortunate natural disasters in Japan and increasing competition. We rate DELL shares NEUTRAL as we remain concerned with the company's longer-term fundamental position and believe the company needs to take more aggressive steps to reinvent itself.”

Dell closed yesterday at $15.90.