Dell’s Q3 Profit Plunges 47% on Lower PC Sales; Results Miss Estimates (DELL)

PC maker Dell Inc. (DELL) late Thursday posted disappointing third quarter earnings results, as lower sales and one-time costs weighed down its profits.

The Round Rock, TX-based company reported third quarter net income of $475 million, or 27 cents per share, compared with $893 million, or 49 cents per share, in the year-ago period. Excluding special items, adjusted profit was 39 cents per share.

Revenue slipped 11% from last year to $13.7 billion.

On average, Wall Street analysts expected a higher profit of 40 cents per share, on larger revenue of $13.9 billion.

Dell noted that desktop PC sales fell 8% from the same period last year, while laptop sales plunged 26%.

The company expects revenue for the current fourth quarter to rise between 2% and 5% on a sequential basis. Analysts are looking for a 4.7% revenue bump. For the full year, Dell backed its previously-announced earnings outlook for adjusted profits of $1.70 per share.

Dell shares fell 28 cents, or -3%, in premarket trading Friday. The stock has plummeted more than 34% since the beginning of 2012.

The Bottom Line
Shares of Dell (DELL) have a 3.35% dividend yield, based on last night’s closing stock price of $9.56. The stock has technical support in the $8 price area. If the shares can firm up, we see overhead resistance around the $11-$12 price levels.

Dell Inc. (DELL) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here