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

David Einhorn Swings at Apple, Hits Dell: Tech Weekly

Stocks in this article: AAPLHPQDELLTSLAGOOGQCOM

Amid plans to go private, struggling computer maker Dell reported moderately better-than-expected earnings, led by the company's networking business.

The Round Rock, Texas-based company reported fourth-quarter non-GAAP earnings of 40 cents a share on $14.3 billion in revenue, down 11% year over year, but up 4% over the previous quarter. The company noted that networking was strong, with revenue from this segment growing 42%.

Analysts polled by Thomson Reuters were looking for earnings of 39 cents a share on $14.1 billion in revenue.

In a Thursday presentation on Apple, Einhorn, who doesn't hold Dell shares, inserted himself into the company's plans to go private in a deal with founder Michael Dell and private equity firm Silver Lake Partners.

Einhorn criticized Dell's deal, arguing that the company's multibillion-dollar cash hoard is helping to pay for the leveraged buyout instead of going to investors.

"Dell's go-private effort shows the disingenuous nature of hoarding cash," he said during a conference call held to explain his proposal for Apple to issue a perpetual preferred stock dividend.

Dell shares ended the week up 2.1% at $13.92.


Dell wasn't the only struggling hardware giant to report better-than-expected earnings. PC giant Hewlett-Packard saw its shares surge after reporting smaller-than-expected revenue and profit declines on Thursday, and improving cash flow dynamics.

All units of the company reported revenue declines, a signal of the work left in the company's turnaround.

HP Investors Heave Sigh of Relief, but Challenges Remain

HP reported first-quarter revenue of $28.4 billion, down from $30 billion a year earlier but above Wall Street's forecast of $27.79 billion. Excluding items, it earned 82 cents a share, down from 92 cents but well above the consensus estimate of 71 cents. Earnings also surpassed HP's forecast of 68 cents to 71 cents.

For the second quarter, HP expects earnings, excluding items, of 80 cents to 82 cents a share. Analysts surveyed by Thomson Reuters were looking for earnings of 77 cents. The Palo Alto, Calif.-based firm predicts full-year earnings of $3.40 to $3.60 a share, well above Wall Street's estimate of $3.32.

On an earnings call, CEO Meg Whitman was also quizzed about a possible breakup of HP, but she reiterated her aim to keep the company intact.

"We have no plans to break up the company, and I have said many times that I feel we're greater and stronger together," she said in response to an analyst's question. "Importantly, customers want this company to be together."

HP (HPQ) shares gained 14% during the week's trading to close at $19.20 on Friday.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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