Beleaguered Dell’s earnings plummet 23% as sales fall across all of its business areas

“Dell Inc. on Thursday reported a fiscal second-quarter profit that fell 23% from a year ago as sales fell across all of its business areas, and the computer giant also gave mixed signals about its outlook for the rest of the year,” Rex Crum reports for MarketWatch.

“Dell said it earned $472 million, or 24 cents a share, on revenue of $12.76 billion. During the same period a year ago, the computer-industry giant earned $616 million, or 31 cents a share, on $16.4 billion in sales,” Crum reports.

MacDailyNews Note: Beleaguered Dell sure works hard for its meager profits. Revenue of $12.76 billion to eke out only $472 million. Nice margins. A race to the botom will do that to you. FYI: last quarter, Apple earned $1.23 billion on revenue of $8.34 billion. In other words, 2/3rds the revenue to generate 3 times the profit.

Crum continues, “Dell’s release slipped out with out three minutes before the market closed, giving the company’s shares a boost of 98 cents, or 6.7%, to close at $15.65 a share. However, in after-hours trading, the stock was off about 1%.”

Full article here.

MacDailyNews Take: And a one, and a two, and a three: SIDAGTMBTTS!

44 Comments

  1. So this explains why DELL stock has gone up by over 6% today! Apparently, Wall Street expected them to suck even worse, and since their suction (sucking?) wasn’t all that bad, they were relieved and started buying…

    A few years ago, Apple had reached and surpassed DELL’s market capitalisation (the value of all outstanding shares on the stock market). Today, DELL represents 20% of AAPL’s value. Ain’t that telling…

  2. All this means is that people and companies can actually afford to buy their computers because they have to work so hard.

    I just can’t seem to get my boss to spend $3,000 on a Mac Pro when he can get a Dell for $800. And before you argue about specifications, I know the Dell is not an 8-core Xeon. And nobody cares.

  3. Yep those corporate deals is whats keeping Beleaguered Dell from completely losing all profits. Thats why they will bend over for Microsoft. Thats monopoly perpetuating is their only hope.

  4. And you know what, we don’t care raskol. There is a place for Yugo type computers for sure and Dell proves that. I think the thing that has always pissed off Mac people is Michael Dell’s arrogance and his stupid ass statement about giving the money back to the stockholders. What is even more disturbing to me is his inability to publicly state it was a stupid ass statement.

  5. LOL!!
    SIDAGTMBTTS

    Priceless… It cracks me up every time…

    Dell let’s a press release just slip out before the market closes that in reality states that Dell sucked in sales and really sucked in profits. Then it’s stock goes up, WTF!

  6. The Dell’s bottom line profit margin is 3.7%.
    It’s not worth running a business if you’re just going to squeak out a profit. If you’re not making at least a 5% profit then you are not a health or viable long term business I don’t care how big you are. If I remember correctly Dell has a lot of Debt overhead too.
    I’d expect Dell’s credit and then bond rating to be cut in the next few weeks.

  7. I had the unfortunate experience of helping a friend with her eleven month old Dell laptop. In less than a year the left hinge had pulled away from the top cover and became unusable. When she called Dell she spoke to someone in Pakistan (she asked), and was told “sorry we don’t cover the plastics” WTF. Anyway I found a new cover and set about replacing it. The build quality was so cheap as to make my jaw drop, all this for $1500.00, also the hard drive had failed as well. Dell was good enough to send a refurbished drive that was dean on arrival. TOTAL GARBAGE

  8. I hate to rain on the MAC lemmings’ parade but the simple truth is everybody has a bit of a slump once in a while—even revolutionary innovators and industrial design powerhouses like Dell.

    Only a fool would count out the geniuses who developed the gorgeous Optiplex GX110. Dell will be back bigger and better with Windows 7, a fresh new Ditty and a snazzy Windows Mobile phone to stomp all over MAC’s crappy derivative product line. Buh-bye MAC.

    Your potential. Our passion.™

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