The revenue decline -- Dell's first year-over-year drop since the beginning of 2007 -- wasn't a surprise. In September, the company said it was seeing weakness in corporate PC spending. Still, Dell's revenue missed a consensus of analyst estimates by about $1 billion.Dell's shares closed 5.2 percent lower today.
"Cost cutting efforts helped offset falling revenue growth," said Bill Kreher, an analyst at Edward Jones. One troubling sign, he added, was Dell's revenue in laptop computers, which grew less than 3%; he said laptop growth was expected to be more robust.
But after weeks of lowered expectations and bearish projections, Dell cleared a low bar: Its earnings beat subdued Wall Street forecasts, thanks to cost cuts and share buybacks. That sent Dell's shares up 5% in late trading to $10.30, after closing down 5% in 4 p.m. trading on the Nasdaq Stock Market.
Dell third quarter sales down 3 percent
Posted on Friday, November 21 2008 @ 22:56 CET by Thomas De Maesschalck