Tuesday, November 1, 2005
Dell Inc. warned that third-quarter earnings and revenues would be below Wall Street expectations, and cited weaker-than-expected U.S. consumer and U.K. businesses.
Dell also said it would take a charge of about $450 million in the third quarter, largely related to repairing some computer systems.
Dell in August missed analysts' second-quarter revenue growth forecasts because it lowered prices aggressively on its entry-level U.S. personal computers.
The company, based in Round Rock, Texas, said it expects a fiscal third-quarter profit per share of 39 cents before one-time items, missing analysts' average estimate of 40 cents per share, according to Reuters Estimates.
Dell said it expects to report revenue of $13.9 billion, below the company's earlier forecast of $14.1 billion to $14.5 billion and analysts' $14.3 billion estimate.
"They were seeing some weakness in desktop and strength in notebooks, but not enough to offset the weakness in desktop," said analyst Shaw Wu of American Technology Research. "Dell's problem is that it's not differentiated enough" from competitors.
By: DocMemory
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