dell revenue expected to be up 45%. do you think any of dell's computer shipments might contain microsoft software?
regards
Round Rock, Texas, Nov. 10 (Bloomberg) -- Following is the
outlook for Dell Computer Corp.'s fiscal third-quarter earnings,
which are expected to be released tomorrow.
Expected Earnings
Dell will report that net income in the quarter ended Oct.
29 fell to an estimated 11 cents to 13 cents a share because of
costs associated with an acquisition.
The world's biggest direct-seller of personal computers had
net income of $348 million, or 14 cents, in the year-earlier
period, adjusted for a 2-for-1 stock split in March.
Analysts polled by First Call Corp. expect profit of 18
cents in the recent quarter excluding the acquisition costs. Dell
has said it will take a charge of about 5 cents to 7 cents a
share for the purchase of ConvergeNet Technologies Inc. The
purchase was completed Oct. 27.
Time
Dell is expected to release earnings at about 4:15 p.m. New
York time tomorrow.
Behind the numbers
Analysts predict Dell's sales will rise about 45 percent
from the $4.82 billion a year ago. Dell warned investors Oct. 18
that third-quarter earnings would be hurt by rising prices for
memory chips. Before the warning, most analysts expected the
company to earn 20 cents a share.
Dell's growth has slowed this year, slipping from the 50
percent increases it reported for each quarter in 1998 and 1997.
What the Experts Say
``It's certainly not been a disastrous year. But when you
look at some of the dot-coms and other technology issues, it's
underperforming them,' said Tim Ghriskey, a portfolio manager
for Dreyfus Corp., which owns about 3.8 million Dell shares.
Previous Market Reaction
Dell shares rose 8.4 percent Aug. 18, a day after the
company reported a 47 percent rise in fiscal second-quarter
profit, topping analysts' forecasts.
Market Performance
Dell, the best-performing member of the Standard & Poor's
500 Index in each of the past three years, is heading for its
worst stock performance since 1993.
The stock has risen 13 percent so far this year, compared
with a 212 percent rise in the year-earlier period. The shares
rose 7/8 to 41 7/16 in recent trading.
¸1999 Bloomberg L.P. |
