Dell Computer Corporation has raised its quarterly profit outlook after citing higher operating profits and a decline in tax rates.
Shares of the Texas-based company rose to $35.20 in trading before the market opened, up from yesterday's close of $34.87, according to the INET electronic brokerage system.
In a statement ahead of its annual shareholder meeting, Dell said it expects earnings of 31 cents a share for the second quarter ending in July, two cents higher than both its previous forecast and year-earlier profit.
Dell said it expects second-quarter revenue of $11.7 billion.
Dell said it now sees its second-quarter tax rate at 24 per cent. This translates into an average rate for the first half of the year of 26 per cent, which it said was consistent with current expectations for fiscal 2005, given continued strong growth in business outside the United States.