Dell Inc. (NDAQ:DELL) posted earnings today showing signs of a successful turnaround after the company exceeded Wall Street estimates. Shareholders have been hoping that Michael Dell's return to the company would spark a turnaround that would help the company exit its current rut and regain its position as one of the top computer makers.

Dell reported a 46 percent jump in profit and a 4.8 percent increase in revenues for the second quarter, beating analyst expectations. Server sales were also up 14 percent along with a 20 percent increase in storage sales. Dell shares added over 2 percent today on the news.

Despite the great earnings, the computer maker still faces a number of hurdles. Analysts are predicting a slower decline in component costs for the second quarter, which could hurt earnings. The company is also continuing its internal investigation into its finances that has left many guessing. And finally, the company has had problems meeting demand for notebooks in certain colors.

In the end, Michael Dell's return to the company seems to be helping. Dell's operating results have definitely improved and the company is making progress towards resolving its other problems. Combined, these factors make DELL a stock worth watching!

Related Companies
IBM Corp. (IBM)
Microsoft Corp. (MSFT)
Google Inc. (GOOG)