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Market: NASDAQ
Sector: Computer Hardware
EPIC: DELL
Latest Price: 15.08  (0.73% Ascending)
52-week High: 18.32
52-week Low: 13.65
Market Cap: 26,571.60M
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Dell
content.dell.com

Dell Inc. is a technology company that designs, develops, manufactures, markets, sells, and supports a range of products, including desktop computers, laptop computers and other associated hardware.

 

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Dell stock sinks 6% as Q4 earnings dip

22nd Feb 2012, 7:52 am by Joyanta Acharjee
Dell stock sinks 6% as Q4 earnings dip

Dell (NASDAQ:DELL) shares were down 6 percent premarket after the computer maker late Tuesday reported that profit dropped and that its sales forecast would be weaker than anticipated.

For the quarter ended February 3, profit of $764 million, or 43 cents per share, compared with a profit of $927 million or 48 cents a share a year earlier.

Revenue was $16.03 billion, up from $15.69 billion. Adjusted income was 51 cents per share. Analysts were expecting a profit of 52 cents per share on revenue of $15.97 billion, according to FactSet Research.

For the current quarter, the company said it expects revenue to drop about 7 percent sequentially, which translates to a sales forecast of $14.91 billion. Analysts were expecting revenue of $15.09 billion, according to data from FactSet Research.

Dell Chief Financial Officer Brian Gladden said the company continued to feel the impact of the hard disk-drive shortage, which has hurt the broader personal-computer market.

Gladden also said Dell had problems in maintaining a supply of higher-end capacity drives. But he added that the crisis is expected to ease later this year, saying that "the hard disk-drive situation gets better in the second half of the year."

Dell highlighted its gains in its effort to expand its higher-end corporate technology businesses, citing revenue growth in its IT services, data-storage, server and networking businesses.

Still, Gladden noted that the company finds itself in a "mixed environment."

It reported sales declines in the public sector and consumer markets. On the other hand, Dell cited sales gains in the large enterprise and small and midsize IT market.

For the full fiscal year, Dell reported $62.1 billion in revenue, a 1 percent increase over the prior year, and net income of $3.9 billion. Earnings of $2.13 per share were 34 percent higher compared to the prior year.

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