This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Dell's Profit, Stock Drop On Weak Quarterly Report

JORDAN ROBERTSON

SAN FRANCISCO (AP) ¿ Some of the computer industry's biggest players ¿ such as IBM Corp., Intel Corp. and Hewlett-Packard Co. ¿ have wowed Wall Street this fall with stronger-than-expected profits.

Dell Inc. didn't join them Thursday.

The company reported a 54 percent drop in net income and a 15 percent decline in revenue in its latest quarter, both steeper than analysts had forecast.

Dell's shares fell $1.43, or 9 percent, to $14.44 in morning trading Friday.

The numbers show that Dell isn't fully benefiting from the industry's fledgling recovery, even though the company is seeing improvement in some areas.

"We are already seeing more client activity in the last 30 to 60 days than we have in a long time," Michael Dell, the company's CEO, said on a conference call with analysts.

Dell has been hurt more than its peers because of tightened spending by corporations and large government agencies, which make up 80 percent of Dell's revenue.

Meanwhile, rivals such as Hewlett-Packard Co. and Acer Inc. have boosted their market share by exploiting their bigger presence in retail stores. That has been a big weapon because consumer interest in little laptops called "netbooks" has helped the PC industry start to pull out of its worst slump in years.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,317.40 -99.45 -0.57%
S&P 500 2,013.51 -7.74 -0.38%
NASDAQ 4,686.1040 +2.6970 0.06%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs