Warning Again, Dell Says Fourth Quarter Will Disappoint

Computer giant Dell(DELL Quote - Cramer on DELL - Stock Picks) this morning warned that it would miss fourth-quarter earnings estimates, citing the deterioration of the global economy and slowing demand for its products.

The PC-maker said its fourth-quarter earnings will come in between 18 cents and 19 cents, missing the First Call/Thomson Financial 23-analyst earnings estimate of 25 cents a share. The company also said the quarter's revenue would be $8.5 billion to $8.6 billion, up 25% to 27% from last year. The First Call 11-analyst estimate projected revenue of $8.5 billion.

A note from Dell this morning said quarterly shipments would likely rise 40% from a year ago.

Just before Dell's warning this morning, Robertson Stephens upgraded the stock to long-term attractive from market performer.

Dell is epected to report final results for its fourth quarter, which ends Jan. 31, on Feb. 15.

In the past two months, TheStreet.com has followed the company's ongoing woes as computer sales have slowed and hit the stock of PC makers. Dell has already warned more than once that it is having problems.

Dell was recently off $2.06, or 8%, to $23.56 in preopen trading. The computer company's 52-week high is $59.69.