Dell results disappoint Street, shares dive

Reuters News
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Posted: May 30, 2012 11:05 AM
Dell results disappoint Street, shares dive

By Poornima Gupta

SAN FRANCISCO (Reuters) - Dell Inc's quarterly revenue fell more than Wall Street's expectations, hurt by weak sales to consumers, large enterprises and government units.

Shares of the world's No. 3 maker of personal computers fell almost 8 percent to $13.90, from a close of $15.08 on Nasdaq.

PC makers have struggled with slowing demand as mobile devices such as Apple Inc's iPad erode market share.

Dell said revenue in its fiscal first quarter declined 4 percent to $14.4 billion, lower than the average analyst estimate of $14.9 billion according to Thomson Reuters I/B/E/S.

Excluding one-time items, the company earned 43 cents, lower than the average Wall Street estimate of 46 cents.

The company posted net income of $635 million, or 36 cents a share, down from $945 million, or 49 cents a share, a year earlier.

For the second quarter of fiscal 2014, the company estimated revenue would rise 2-4 percent from first-quarter levels.

Among the divisions, sales to consumers took a big hit with consumer revenue slipping 12 percent to $3 billion. Sales to large corporations declined 3 percent to $4.4 billion.

(Reporting By Poornima Gupta; Editing by Richard Chang)