Dell profit and revenues shrink, and so does its outlook
The company warned that sales in the August-October quarter will continue declining on a sequential basis. CEO Dell says the company is "transforming" its business.
Dell again posted disappointing earnings, and its shares declined 3.5 percent in after-hours trading.
The company's sales and net income both shrank in the May-July quarter compared to a year earlier. Revenue fell eight percent to $14.5 billion, while net income dropped 18 percent to $732 million. Dell blamed the decline on a contraction in desktop and mobility revenue.
The company's adjusted profit did exceed analyst expectations, though revenue fell short. Dell reported per-share earnings of 50 cents on the adjusted basis beloved by Wall Street. The consensus estimate compiled by First Call was for per-share earnings of 45 cents on $14.7 billion in sales.
Dell also said that it now expects revenue in the August-October quarter to edge downward another two to five percent compared to the immediately preceding quarter. At the same time, Dell adjusted its full-year earnings outlook "to at least $1.70 a share." Wall Street had expected full-year profit of $1.90 a share
"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," said Michael Dell, chairman and CEO in a statement. "We're clear on our strategy and we're building a leading portfolio of solutions to help our customers achieve their goals."
More to come.
Corrected at 1:40 p.m. PT: Dell's quarterly earnings actually beat analyst expectations in the May-July quarter. An earlier version of this story incorrectly described its report as an earnings miss.