More Bad Dell News — Dell Will Undershoot Wall Streets Expectations
With PC sales slowing, Dell will undershoot Wall Street’s bottom-line expectations by 5 cents a share, the company warned investors after Monday’s closing bell. This week has started out rough for the PC giant!
Dell said that it now expects to earn about 33 cents in the first quarter on revenue of about $14.2 billion; it had expected earnings of 36 cents to 38 cents a share on revenue of $14.2 billion to $14.6 billion. Prior to the announcement, analysts polled by Thomson First Call were looking for a profit of 38 cents a share on sales of $14.52 billion. Analysts’ estimates and the new EPS number cited by Dell both include 3-cents-a-share of stock-based compensation. If there is a broader selloff, it probably won’t extend beyond companies closely tied to the PC business, said Scott Kessler, head of technology sector equity research for Standard & Poor’s.
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