DELL - Profit Warning !!!!!!
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DELL - Profit Warning !!!!!!
Dell Warns of Earnings Shortfall
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
May 8, 2006 5:16 p.m.
Dell Inc. warned its fiscal first-quarter earnings would fall short of its forecasts, as the computer maker struggles with stepped up competition and aggressive discounting.
Dell, the world's largest maker of personal computers by sales, issued the earnings update after the close of trading. In after hours trading, its shares fell 6% to $24.48 after gaining 75 cents to $26.43 in the regular session on the Nasdaq Stock Market.
The Round Rock, Texas, company has been struggling to achieve aggressive growth targets as PC prices have dropped, growth has moved overseas and competitors have copied its low-cost, direct-sales strategy. Dell has posted disappointing results in two of its last three quarters.
On Monday, Dell said it expects earnings of 33 cents a share for the quarter ended in April, compared with its previous forecast of 36 cents to 38 cents a share. Quarterly revenue is expected to be about $14.2 billion, the low end of its previous estimate of $14.2 billion to $14.6 billion.
The shortfall from the previous guidance was driven primarily by pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future, Dell said.
"During the first quarter, we continued to execute on our strategy to reinvigorate growth by making investments in our support infrastructure and product quality and by accelerating pricing adjustments,'' said Kevin Rollins, Dell's chief executive, in a press release.
Dell is facing stepped-up competition from Hewlett-Packard Co., especially in the markets for corporate servers and low-cost consumer PCs. While Dell's world-wide PC shipments rose 10% in the first calendar quarter from a year ago, its share of the market fell slightly while H-P's share rose, according to the research firm Gartner Inc.
Dell still leads the market with a 16.5% share, down from 16.9% a year earlier, while H-P is No. 2 at 14.9%, up from 13.8%, Gartner reported last month.
Dell said it will announce financial results for its fiscal first quarter on May 18.
After Hours - Está a perder 6%
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
May 8, 2006 5:16 p.m.
Dell Inc. warned its fiscal first-quarter earnings would fall short of its forecasts, as the computer maker struggles with stepped up competition and aggressive discounting.
Dell, the world's largest maker of personal computers by sales, issued the earnings update after the close of trading. In after hours trading, its shares fell 6% to $24.48 after gaining 75 cents to $26.43 in the regular session on the Nasdaq Stock Market.
The Round Rock, Texas, company has been struggling to achieve aggressive growth targets as PC prices have dropped, growth has moved overseas and competitors have copied its low-cost, direct-sales strategy. Dell has posted disappointing results in two of its last three quarters.
On Monday, Dell said it expects earnings of 33 cents a share for the quarter ended in April, compared with its previous forecast of 36 cents to 38 cents a share. Quarterly revenue is expected to be about $14.2 billion, the low end of its previous estimate of $14.2 billion to $14.6 billion.
The shortfall from the previous guidance was driven primarily by pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future, Dell said.
"During the first quarter, we continued to execute on our strategy to reinvigorate growth by making investments in our support infrastructure and product quality and by accelerating pricing adjustments,'' said Kevin Rollins, Dell's chief executive, in a press release.
Dell is facing stepped-up competition from Hewlett-Packard Co., especially in the markets for corporate servers and low-cost consumer PCs. While Dell's world-wide PC shipments rose 10% in the first calendar quarter from a year ago, its share of the market fell slightly while H-P's share rose, according to the research firm Gartner Inc.
Dell still leads the market with a 16.5% share, down from 16.9% a year earlier, while H-P is No. 2 at 14.9%, up from 13.8%, Gartner reported last month.
Dell said it will announce financial results for its fiscal first quarter on May 18.
After Hours - Está a perder 6%
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