Beleaguered Dell drops nearly 10% as quarterly results miss expectations; profit plunges 33%; weak guidance

“Shares of Dell (DELL) are down [1.48, or 9.81%, at $13.60], after the company this afternoon reported fiscal Q1 revenue and earnings per share below analysts’ estimates, and forecast a Q2 revenue rise less than expected,” Tiernan Ray reports for Barron’s.

“Revenue in the three months ended May 4th fell 10%, quarter over quarter, and 4%, year over year, to $14.4 billion, yielding EPS of 43 cents, excluding some costs,” Ray reports. “Analysts had been modeling $14.91 billion and 46 cents EPS… The biggest decline was from consumers, where revenue was down 12%.”

Ray reports, “For the current quarter, the company projects a 2% to 4% rise in revenue, which would be $14.7 billion to $14.98 billion, below the average $15.44 billion estimate on the Street.”

Read more in the full article here.

MacDailyNews Take: SIDAGTMBTTS!

Dell CEO Michael Dell

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30 Comments

    1. This is again more clear evidence of Apple crushing another iRoadKill. They can’t hide Apple’s victory and the people know what they want and Dell (HP and the rest of the old school Microsoft Windows PC box makers) don’t have what people want today.

      Michael Dell, got any more advice for Apple? Closing your doors soon? Giving the Dell share holders back their money while there is some left to give back?

  1. And when the new MacBook Pros and iMacs come out next month (I hope), our Mikey will be looking for a cliff to jump off . . . along with his stock price.

  2. WOW. The iPad is killing DELL.

    When Apple starts attacking DELL at the midrange with new MacBooks, that’s going to be a site to see… Apple already owns the high end.

  3. Look at that face. Oh he’s guilty alright. Guilty of squandering his time in retirement as his company fell down a hole. The stock nose-dived and he came back to work to save the brand and his only saving grace would be a killer product, preferably something to do with mobility. duh.

    Yeah right, like mikey dell is just gonna waltz in here and . . . . oh wait! He did, he walked in, tossed people out and took absolute control of Dell and drove it into a ditch.

    ouch.

    1. Love It. Sweet Justice. It could not be soon enough for me to witness the TOTAL dimise of DELL HELL!!! AND!!!! to ponder THE VERY FACT THAT THROUGH THE PC DARK AGES Apple was the TINKER TOY COMPUTER COMPANY!!!!
      I know this is childish…… But I gotta say it for the record and to vent after these LONG 25+ years…….Fck You Michael Dell…… FCK YOU & your third rate company and narcasistic corporate behavior.

    2. How much longer before he gets Jerry Yang’d? The revolving-door CEO spot at Yahoo is probably a foretaste of what Dell would be in for after he steps down.

    1. Agreed, although I might add the word “innovate” to your formula. I realize that hindsight is always 20/20, but it amazes me how complacent Dell management seemed to be. Their business model revolved around low-priced, direct sales. In a competitive global marketplace, it’s really not rocket science to see the inherent vulnerabilities in that strategy. For years, they had solid name recognition, robust profits, a high stock price, and strong market share; why they weren’t using those assets to develop and implement a fallback strategy (other than to produce derivative knock-offs) would make a great MBA case study.

      1. Dell, HP and the rest of the PC box-makers sold their souls to Microsoft and see the final results. They became commodity, rock-bottom manufacturers. Google is taking the cue from Microsoft and is condemning itself and its partners for the final downfall, maybe 3–5 years from now.

        1. It’s to bad that Michael Dell listened to the wrong people especially hiring Kevin Rollins and turned Dell into a commodity computer company, the company’s products may not have been innovative but they were built like tanks and were worth the price you pay. Before Dell went 100% Microsoft with their corporate infrastructure they were one of the biggest users of NeXT OpenStep, it’s a real shame.

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