Dell shares slip as computer maker sets aside cash for potential SEC settlement
By APFriday, June 11, 2010
Ahead of the Bell: Dell shares slip
NEW YORK — Dell Inc. shares slipped ahead of regular trading Friday after the computer maker said that it is setting aside $100 million to cover potential costs related to an ongoing accounting probe.
Analysts noted that a settlement with the Securities and Exchange Commission will not change the company’s adjusted earnings, which typically strip out one-time charges.
“Frankly, (we’re) not surprised as we have long been a critic of the company’s accounting practices and quality of earnings,” Kaufman Bros. analyst Shaw Wu told clients in a note Friday. He kept a “Hold” rating on Dell’s stock.
Collins Stewart analyst Louis Miscioscia also kept a “Hold” rating on shares. Dell shares were down 17 cents, or 1.3 percent, to $12.90 in premarket trading.
Tags: Business And Professional Services, New York, North America, United States
