Dell (DELL) is trying to call a bottom in IT spending. But modestly in-line projections failed to spark confidence.
The Round Rock, Texas PC maker offered a financial update Monday calling for sequentially improved sales, which would be in line with Wall Street's expectations. The gains, however, come with a narrowing of gross margins, says Dell, blaming expensive parts and heated price competition.
Dell vowed to keep pushing toward its goal of eliminating $4 billion in costs. And looking ahead at the long-range forecast, Dell says it expects sales to grow between 5% and 7% annually.
That is slightly higher than the 4.7% growth rate analysts are expecting for 2010.Dell provided the update ahead of its analysts' day conference Tuesday. "One of our strengths is understanding customer needs and meeting them with great technology and services," CFO Brian Gladden said in a press release Monday. "To do that best, we're investing to expand on existing capabilities and extend into new areas, while smartly and efficiently managing our costs and assets." Dell shares fell 44 cents, or 3%, to $12.58 in afterhours trading Monday.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV