Wednesday, August 17, 2011

Dell lowers revenue forecast, shares fall (AP)

SAN FRANCISCO ? Dell Inc.'s second-quarter net income rose 63 percent on stronger spending by corporations and government agencies. But its stock dropped as revenue fell short, and the computer maker lowered its revenue forecast.

The stock fell 94 cents, or nearly 6 percent, to $14.86 in extended trading Tuesday, after the results were reported.

Net income rose to $890 million, or 48 cents per share. Dell, which is based in Round Rock, Texas, earned 54 cents per share on an adjusted basis, which beat the average estimate of 49 cents per share from analysts polled by FactSet.

In the same period last year, Dell earned $545 million, or 28 cents per share.

Revenue rose 1 percent to $15.66 billion, slightly short of the $15.75 billion that analysts expected.

For the full year, the company expects revenue to grow 1 percent to 5 percent, citing decisions to invest in more profitable business lines and "a more uncertain demand environment." It previously expected growth of 5 percent to 9 percent. The new forecast translates to a range of $62.1 billion to $64.6 billion.

Source: http://us.rd.yahoo.com/dailynews/rss/earnings/*http%3A//news.yahoo.com/s/ap/20110816/ap_on_hi_te/us_earns_dell

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