This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Earnings Preview: Dell Slips Even As PCs Rebound

Also during the quarter, Dell agreed to pay $4 million to settle a lawsuit in New York state over deceptive advertising of promotional credit financing and warranties. Dell acknowledged no wrongdoing in the settlement.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters expect Dell to post a profit of 28 cents per share on $13.1 billion in revenue.

ANALYST TAKE: Broadpoint AmTech analyst Dinesh Moorjani wrote in a research note last week that Dell's PC shipment growth lagged the overall industry in the quarter because its business customers haven't resumed spending on technology yet. The company also resisted cutting prices just to gain market share.

The analyst also wrote that he expects Dell's margins to have declined in the quarter thanks to higher component prices.

But Moorjani raised his earnings estimates for Dell's next fiscal year in part due to "increased conviction of an enterprise (information technology) spending recovery and PC upgrade cycle in 2010."

WHAT'S AHEAD: Dell's next quarterly report, due in February, will include the first peek at how Dell's entry into the smart phone industry performed. The company unveiled phone hardware and announced its first two carriers, China Mobile in China and Claro in Brazil, last week.

STOCK PERFORMANCE: Shares of Dell gained 8 percent to end the quarter at $14.45 on Oct. 30. Since then, the stock has improved another 10 percent.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
IT $86.05 -0.34%
HPQ $30.80 0.75%
PER $7.57 2.44%
AAPL $125.69 -0.25%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs