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Dell Warns FY061Q Earnings Will Miss Mark

Tags: Dell, Tech, Computers
9 May 12:14am

Dell Inc.

DELL (NASDAQ)

Forecast has expired Ended: Wednesday May 10, 2006

Target

$24.00 and below

-$2.43 (9.2%)

Time Span:2wks and below

Final

$14.55

-$11.88 (44.9%)

Recommendation

Rating:Sell

Risk:Moderate

Stop Loss Price:Unspecified

Final XP: 0

Target reached

Analysis

Dell said yesterday that its 2006 first-quarter results will miss earnings targets, blaming the shortfall on pricing decisions made by management. The shortfall from the previous guidance stems primarily from pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future (or so they claim). The aggressively discounted products gave lost to ground to rivals.