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 Dividend.com DARS™ Rating of 3.2 out of 5 stars.