Feeds

Dell warns of Q2 earnings bloodbath

Mad at the world

Choosing a cloud hosting partner with confidence

Rather than pointing a finger at itself, Dell has blamed a weakening global economy for its second quarter profit warning issued today.

Dell sees second quarter revenue coming in at $14bn and predicts a Q2 earnings per share figure between 21 cents and 23 cents. It's that EPS range that's the real tragedy for investors. Analysts had been expecting revenue of $14.2bn and a much higher EPS figure of 32 cents.

Dell shares began plummeting the instant word leaked about its second quarter update. At the time of this report, Dell had dropped more than 13 per cent to $19.14 - a new 52-week low.

This marks Dell's second fiscal warning in a row.

In the first quarter, Dell blamed tough competition and its own high prices for missing profit targets.

This time around, Dell has decided to curse the world for its woes.

"These (second quarter) estimates primarily reflect aggressive pricing in a slowing commercial market worldwide," Dell said.

You can bet that financial analysts will give Dell a very hard time over the second quarter drop. The Wall Street crowd didn't seem too convinced about CEO Kevin Rollins' plan to boost Dell's fortunes by lowering prices.

You'll also want to see if the analysts buy Dell's weak economy line. A weak chip sector and warnings from the likes of SAP had investors concerned earlier in the week, but solid results from IBM, Google, and Microsoft seemed to dampen these concerns. IBM's CFO this week noted that he did see a slowdown in corporate spending near the end of the company's most recent quarter but then added, "There is definitely no indication that this is a trend."

Dell will announce the second quarter results on Aug. 17. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.