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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Beleaguered Dell discontinues all U.S. smartphone sales – March 29, 2012

30 Comments

  1. The new guy we hired wanted a Dell; the IT droids were happy to give it to him so that one person in our dept doesn’t have a Mac. Poof fellow, he knows not what he’s wrought.

  2. It’s really sad to see Dell stumble like this, I remember when Dells were built like tanks, now they are just a big door stop or paper weight…

    Michael Dell should have just kept quiet instead of picking on Apple at the time…

  3. Down ten percent in the consumers market and they have no analysis that they’ve been mauled by Apple. And still them excuses on hard drive shortage beacuse of the flood. How long are they goin to milk that one? Lastly they blame the sales people who can’t move their plastic crap. I like their strategy and lack of understanding the situation, I like it a LOT! They ARE goin down. I’m forced to use a Dell laptop at work and I hate the guts of it, what a POS!

    1. Groucho,

      I am truly sorry for your work situation but …..

      Try to think of the Dell at work as an example of why you have a Mac …..

      Our IT Guy, just today asked for an iPad so he can build some apps and downloaded XCode and actually built an App and was smiling ….. Next he may ask for a Mac and he is hard core windows but we make him support our macs, cause we are the boss …….

      1. You know it has come to that IT used to dictate, no longer.

        One of my PA’s boyfriends got a huge career boost a few years ago. Todd was working as an tech support/help desk person in a large law firm downtown. Several of the partners had acquired iPads and had asked the director of IT if he could get them to print on the firms large (kyocera) high speed printers. The IT director replied that iPads were basically toys and that the “real” (i.e. windows) tablets were just on the horizon.
        A few weeks later Todd was in helping one of them with their iPad when the Partner mentioned “that the iPads would be more useful if they could print” Todd suggested he could simply have them attach the documents they wanted to print to email (one email address for each printer) By the end of the day he had a script (in the mail server) to print any attachment sent to that mailbox.
        He was immediately put in charge of a “mobile technology” task force who would “renovate” the approach to the new technology and would report directly to the partners (rather than to the IT dept) And now the members of that “task force” run the IT department.

        The days of a company’s IT department dictating policy to management are quickly coming to an end (and rightfully so, like accounting their only job is to support production & management, as they generate nothing on their own)

        So I guess that refutes the old adage about how no one ever gets fired for suggesting windows, eh?

        And lets not mourn Dell’s passing, they make absolutely horrid, totally unimaginative, barely functional crap. They deserve to die.

  4. Dell CFO Brian Gladden: “In addition, we are seeing more consumer spending diverted to alternative mobile computing devices.”

    Gee, I wonder what those alternative devices could be?

  5. Dell needs to follow his own advice he gave in 1997.

    “What would I do? I’d shut it down and give the money back to the shareholders,” Michael Dell said before a crowd of several thousand IT executives.

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