Dell Reports Q2 Results (DELL)
Shares of Dell Inc (NASDAQ:DELL) fell 4.54% in aftermarket trading on Tuesday as personal computer maker reported weaker-than-expected quarterly sales and cut its full-year earnings outlook.
For the fiscal second quarter, after excluding onetime expenses, earnings stood at 50 cents a share, down from 54 cents a share in the year-earlier quarter.
Net income came at $875 million, down 13% from $1.01 billion in the corresponding period of last year.
Revenue contracted 8% to $14.48 billion from $15.66 billion in the year earlier period.
Analysts polled by Thomson Reuters on an average expected earnings after excluding expenses at 45 cents on revenue of $14.64 billion.
In the current quarter, the company expects revenue to shrink by 2% to 3% compared to year earlier quarter even as it trimmed its full-year earnings outlook to $1.70 a share –which is below analysts’ projection for $1.90 a share.
While addressing the conference call, the company said lowered forecast was due to uncertain global macroeconomic environment. However, the company expects strong sales growth will continued from its enterprise business even as PCs market is expected to struggle.
“Growth in our PC business was challenging, as we saw a tough macroeconomic and competitive environment, and continued to focus on higher-value solutions in this business,” said Brian Gladden, Chief Financial Officer, in a statement.
Meanwhile, the company has also decided slash more than $2 billion costs in following three years. The company intends to cut costs associated with supply chains, sales group in this period while it pay more attention to corporations technological requirements.
Lately, the PC market has witnessed sharp fall in demand as more and more users are drifting towards Apple’s iPad and smartphones.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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