Dell and Wel Seal Active in Aftermarket After Earnings

Shares of Dell (DELL) were among the most active in after-hours action after the PC giant blew past Wall Street's profit expectations for its third-quarter results.

Although revenue of $15.5 billion fell short of the consensus view of $15.8 billion, Dell's adjusted earnings of $1.2 billion, or 42 cents a share, for the three months ended in October was almost 40% above the average estimate of analysts polled by Thomson Reuters for EPS of 32 cents a share. It was the company's most convincing beat in the last two years, a period where it has only came in below the analyst projection once.

The stock was last quoted at $14.49, up 6%, on volume of 6.2 million, according to Nasdaq.com. Based on a regular session close at $13.66, the shares were down roughly 7% year-to-date; although they had bounced 20% since scraping a 52-week low of $11.34 on Aug. 24. Dell cited strong commercial demand for surprising profit, which was a 60% jump from its year-ago equivalent total.

Another gainer in extended trades was The Wet Seal (WTSLA), which added 6.1% to $3.50 with a little less than 33,000 shares changing hands. Year-to-date, the stock is down about 6% based on its regular-session close at $3.30.

After the close, the Foothill Ranch, Calif.-based young women's apparel retailer reported its third-quarter results, posting an adjusted profit of $4 million, or 4 cents a share, on sales of $146.4 million, and said it expects earnings of 3 to 5 cents a share for the current fourth quarter with sales projected to increase to between $158 million and $163 million.

The current average estimate of analysts polled by Thomson Reuters is for a profit of 6 cents a share in the January period on sales of $156.2 million.

Given the mixed comparison of the outlook with Wall Street's expectations, buyers of Wet Seal shares late Thursday may be taking their cue from the company's comments about how business is shaping up in November.

"Our inventories in both operating divisions were well-positioned at the end of the quarter," said Ed Thomas, the company's president and CEO in a press release. "In November month-to-date, our consolidated comparable store sales are positive, which we hope bodes well for the upcoming holiday selling period."