Dell: disappointing quarterly results and forecasts

(CercleFinance.com) - Dell reported weaker-than-expected results for its third fiscal quarter on Wednesday evening, and unveiled equally disappointing forecasts for the current quarter.


The Texas-based technology group reported a 10% increase in sales to $24.4 billion for the quarter ended early November, compared with analysts' expectations of $24.6 billion.

Net income was $1.13 billion - or $1.58 per share - for the quarter, compared with just over $1 billion, or $1.36 per share, for the same period last year.

Excluding non-GAAP items, earnings were $2.15 per share, ahead of the $2 per share expected by analysts.

While the company's order book for AI servers now stands at a 'record' $3.6 billion, analysts are disappointed by the fact that the company is targeting sales of $24.5 billion for the quarter (ending in late January), i.e. stable on a sequential basis.

The consensus forecast was for quarterly sales of $25.4 billion.

Another disappointment according to professionals was that the PC and notebook segment also missed market expectations in the third quarter, with sales of $12.1 billion below the $12.5 billion targeted by consensus.

This means that the prospect of a market turnaround has once again been postponed", lamented Mizuho analysts.

On the New York Stock Exchange, Dell Technologies shares dropped more than 13% in the wake of this publication, suffering the biggest drop in the S&P 500 index.

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