Dell Q3 Earnings Dismal; Profit Plunges 54%
Dell, in its Q3 earnings report to the street, reported significant declines in its business sales groups, leading to a Year-over-year decline in profits of 54% or ($390M) and signaling to investors that the company has more systemic issues than just a recessionary sales environment.
Posted by Admin Date: Thursday, November 19, 2009
Dell To Report Earnings; Sales Decline Expected
Dell Inc. reports earnings next week and analysts are expecting the company to report a continued decline in sales and earnings for its third fiscal quarter.
The personal computer maker will report results for the quarter on Nov. 19. Analysts surveyed by Thomson Reuters estimate Dell will earn 28 cents a share on $13.1 billion in sales for its third quarter. During the same period a year ago, Dell earned 37 cents a share on revenue of $15.2 billion.
Investors are looking forward to hearing how Dell’s strategy shift is progressing in light of a highly competitive environment with HP, Acer and Lenovo. In September, the company acquired Perot Systems Corp. for $3.9 billion establishing Dell as a player in the information technology services market.
During the quarter, Dell also lost its place as the #2 PC company in the world to Taiwan’s Acer Inc. (2353.TW, ACEIY). Acer’s PC shipments rose 23.6% to 12.5 million units, giving it 15.4% of the market. By contrast, Dell’s shipments fell 6.7% to 10.3 million units which equated to a 12.8% market share.
Both companies continue to trail H-P in worldwide PC sales.
Dell still maintained the top spot in the U.S., with 4.7 million shipments and a 26.2% market share. However, those results were colored by the company’s U.S. shipments falling almost 9% from a year ago.
Posted by Admin Date: Thursday, November 12, 2009
