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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: Marc who wrote (3411)	5/17/1999 4:12:00 PM
From: Marc	Respond to of 5927

Dell Computer's 1st-Qtr Profit Seen Rising: Earnings Outlook Bloomberg News May 17 1999 1:41PM ET Expected Earnings Dell Computer Corp., the No. 1 direct seller of personal computers, is likely to report a fiscal first-quarter profit of 16 cents a share, according to the average analyst estimate from First Call Corp. Dell earned $305 million, or a split-adjusted 11 cents, in the year-earlier period. Time The company, based in Round Rock, Texas, near Austin, will report results for the quarter ended April 30 tomorrow after the close of U.S. trading. Behind the Numbers Analysts forecast revenue will rise as much as 45 percent, to $5.7 billion from $3.92 billion. Dell gained two percentage points in worldwide PC market share during the first three months of the year, according to market researcher Dataquest Inc. The increase came at the expense of rival Compaq Computer Corp., the No. 1 PC maker, whose market share declined about a point. Dell is pressing its strategy of selling PCs over the Internet and the telephone, while Compaq, which sells primarily through retailers and a network of dealers, has faltered. At the same time, Dell's sales growth in its fiscal fourth quarter slowed to 38 percent -- its lowest level in two years. Investors are looking for a rebound in the first quarter. What the Experts Say ''The expectations are back at a higher level,'' said Cody Acree, an analyst at Southwest Securities Inc. in Dallas, who rates the stock ''accumulate.'' ''If they come in at 38 or 39 percent, I think there's going to be some cause for concern.'' Previous Market Reaction Dell shares tumbled 8.1 percent on Feb. 17, a day after the company reported the 38 percent sales increase. It was the first time in two years that sales growth was less than 50 percent. Market Performance Dell shares rose 3/8 to 41 9/16 in recent trading. The stock, the best performer on the Standard & Poor's 500 Index for the last three years, has gained 14 percent this year.