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Dell shares drop over weak earnings and outlook

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dellDell Inc. (NASDAQ: DELL) stoked fears in the PC market as the Company forecasted that revenues will fall short of expectations, for the first quarter.

The world’s No. 3 personal computer maker cautioned that sales would be down as much as 7 percent this quarter from the previous quarter, when it posted revenue of $16 billion. Accordingly, sales are expected to be $14.9 billion, below the average forecast for roughly $15.2 billion.


Earlier, Dell’s fiscal fourth quarter earnings also came under the Wall Street’s scanner. However, the Company’s strength in its corporate business unit was offset by weakness in the division which caters to public businesses.

According to ISI Group’s analyst Brian Marshall “investors are disappointed by the lack of upside in this quarter as well”. “It’s going to take a little bit of time for Dell to turn around the tanker ship”, added Marshall.

In the recent past, PC makers have grappled with slackening demand as mobile devices such as Apple Inc’s iPad eroded market share, even as shortage of hard drives after flooding in Thailand disrupted company’s supply chain.

Thomson Reuters I/B/E/S notes that revenues in Dell’s fiscal fourth quarter was up by 2 percent at $16 billion, which was in line with the average analyst estimate of $15.96 billion. In the same period, the company posted a net income fall of 18 percent to $764 million, or 43 cents a share, down from $927 million, or 48 cents a share, a year earlier. Excluding one-time cost, it earned 51 cents a share, a cent below than analysts’ expectations.

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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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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.

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