Dell Profit Dives as PC Sales Slide
Dell reported a 79 percent slide in profit in the first quarter as personal computer sales continued to shrink.
Dell reported a 79 percent slide in profit in the first quarter as personal computer sales continued to shrink.
Dell was once the envy of the consumer tech industry, but its days sales growth are long past. The PC maker saw its profitability drop sharply as sales tumbled 11% to $13.7 billion in the quarter that just ended -- even further than analysts expected.
Computer users are starting to think outside of the box, and that's bad news for Dell and Hewlett-Packard. The two PC giants will be reporting this week -- Dell on Tuesday and HP on Wednesday -- but investors aren't holding out for much.
Given the market's extreme and distressing gyrations over the past week, you'd be forgiven for thinking corporate earnings had been, on the whole, disappointing. But that's not actually the case: A large majority of public companies have performed quite well.
Next week brings more earnings reports from big-name companies, including several home improvement giants, a couple of "good enough" computer makers, penny-pinching discount masters, and office supplier Staples -- whose results might stand as an indication of the broader economy's health.
For many companies, meeting or beating quarterly earnings estimates matters more than anything else. All too often, the drive to perform bleeds into a temptation to cook the books. But astute investors can see behind the numbers to glimpse the truth. Here are a few of the major red flags.
Dell will highlight a handful of tech company results this week. Also reporting earnings will be food giants Smucker and Campbell Soup, also Marriott and other members of the lodging and hospitality industry, and the first of a long string of results from retailers.
Computer maker Dell reported better-than-expected earnings of $629 million, or 32 cents per share, excluding charges. A key driver for the gain was rising commercial demand for its enterprise solutions.
Turns out, the incredible results Dell delivered during the last decade weren't so incredible after all. The SEC has levied fines against Dell, and founder Michael Dell, after charging the computer-maker with accounting fraud.








