Dell 4th-quarter results likely to be another sign of ongoing slow tech spending by businesses

By AP
Thursday, February 18, 2010

Ahead of the Bell: Dell to report 4Q results

SEATTLE — Dell Inc., the third-largest computer maker in the world behind Hewlett-Packard Co. and Acer Inc., is expected to say Thursday that its adjusted net income edged down about 7 percent in the fiscal fourth quarter even though consumers started spending again on personal computers.

Reports from industry analysts and Dell’s competitors over the last month and a half already made clear that shoppers snapped up heavily discounted laptops and smaller netbooks during the holidays.

Those reports also indicated that while some businesses began upgrading server computers in the quarter, most regular enterprise spending on technology remained on hold. Dell’s business is more reliant on corporate customers than many of its competitors.

Hewlett-Packard said Wednesday its fiscal first-quarter profit jumped 25 percent and topped estimates as sales of both corporate and personal computers picked up.

Analysts polled by Thomson Reuters expect Dell to earn 27 cents per share on $13.85 billion in revenue, excluding contributions from Perot Systems Inc., which Dell acquired for nearly $4 billion in the quarter. On the same adjusted basis, Dell earned 29 cents per share a year ago on $13.4 billion in revenue.

(This version corrects lead to reflect adjusted earnings expected to decline.)

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