Dell to meet earnings forecast, stay competitive

PC maker, Dell Computer, expects to post fiscal first-quarter earnings in line with Wall Street analysts' predictions on better-than-expected revenue.

The company said Wednesday that it anticipates posting earnings of about US$0.16 per share for its fiscal first quarter ending May 3, a penny less than in the year-ago period. Revenue is expected to amount to $7.9 billion, down 2 percent sequentially. Dell warned in mid-February that unit volumes and revenue could be down 3 percent to 5 percent.

Analysts expected Dell to report earnings of $0.17 per share on $7.7 billion in revenue, according to Thomson Financial/First Call.

Dell said that although component prices are flattening, it will continue to lower costs to win customers in "the midst of industry softness and change." The cost savings will no longer come from components, but from efficiency improvements, Dell said.

Dell in the past year took advantage of falling component prices to aggressively compete and win market share. Component prices are now on the rise and have moved some PC makers to raise prices.

Join the newsletter!

Or
Error: Please check your email address.

More about Dell ComputerFirst CallThomson FinancialWall Street

Show Comments