Dell Warns (Again)

Expect earnings of 33 cents a share, and sales of $14.2 billion. The Street was looking for 38 cents and $14.52 billion.

The shortfall in earnings versus previous guidance was driven primarily by pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future.
“During Q1 we continued to execute on our strategy to reinvigorate growth by making investments in our support infrastructure and product quality and by accelerating pricing adjustments,” said Kevin Rollins, Dell’s Chief Executive Officer. “We are committed to delivering industry leading value to our customers, which ultimately results in industry leading growth for the company.”

The stock is down to $25 after hours.

Posted by on May 8th, 2006 at 5:11 pm


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