Earnings Roundup

Dell Inc. reported a decline in fourth-quarter profit after it lost market share to Hewlett-Packard Co.

Net income slipped to $334 million, or 17 cents a share, from $351 million, or 18 cents, a year earlier, the company said Thursday. Profit excluding some costs was 28 cents a share. Analysts predicted 27 cents, according to a Bloomberg survey.

Sales rose 16% to $14.9 billion, topping the average estimate of $13.8 billion.

Michael Dell, who reclaimed the chief executive’s job three years ago, has been diversifying away from low-priced computers and promoting sales of more profitable products. That led Dell to drop to No. 3 in the personal computer market last year behind Hewlett-Packard and Acer Inc. It also prompted the $3.9-billion takeover of Perot, expanding Dell’s services business.

“Dell continues to grow slower than its peers, meaning further market share losses,� said Shaw Wu, an analyst at Kaufman Bros. in San Francisco.

Dell shares fell 39 cents to $14.04 in late trading, after results were released. They had closed earlier at $14.43, up 32 cents.

DIRECTV

Merger charge leads to loss

DirecTV Inc. reported a fourth-quarter loss after absorbing a hefty merger charge. The nation’s largest satellite-TV operator also added 60% fewer new subscribers as discounted bundles from competitors and a weak economy took their toll on growth.

DirecTV has benefited from subscriber losses at cable companies but has faced aggressive marketing from satellite-TV operator Dish Network Corp., which has offered hefty promotions.

DirecTV lost $32 million, or 3 cents a share, compared with a profit of $332 million, or 32 cents, a year earlier. Excluding a $491-million pretax charge related to its merger with entertainment assets spun off by Liberty Media Corp. in November, DirecTV earned $454 million, or 48 cents a share. That’s 37% higher than earnings in the 2008 quarter.

Revenue rose nearly 13% to $5.98 billion.

Results beat the forecasts of analysts polled by Thomson Reuters, who expected adjusted earnings of 42 cents a share on revenue of $5.92 billion.

Shares of DirecTV, based in El Segundo, rose $1.31, or 4.1%, to $32.96.

CBS

Net income falls 57% as sales slip

Broadcasting company CBS Corp. said its net income fell by more than half in the holiday quarter as a gradual improvement in the advertising market was unable to lift overall revenue.

Net income fell to $59 million, or 9 cents a share. That was down 57% from a year earlier, when earnings were $136 million, or 20 cents.

Sales fell 1% to $3.50 billion, slightly higher than estimates of $3.47 billion.

Higher national ad sales and an improving market for local television ads were offset by declines in radio and outdoor advertising.

Adjusted for one-time items, earnings were 25 cents a share. That met the expectation of analysts polled by Thomson Reuters.

CBS shares fell 21 cents to $13.50 in after-hours trading following the announcement, after closing at $13.71, up 19 cents.