Friday, November 20, 2009

Dell Shares Fall after Q3 Profit Plummets 54%, Missing View (DELL)

PC maker Dell Inc. (DELL) said late Thursday that its third-quarter profit plunged 54% from last year, hurt by lower revenue.

The Round Rock, Texas-based company reported third-quarter net income of $337 million, or 17 cents per share, down from $727 million, or 37 cents per share, in the year-ago period. Revenue fell 15% from last year to $12.9 billion.

On average, Wall Street analysts expected a much higher profit of 28 cents per share, on larger revenue of $13.2 billion.

Dell also lost its number-two ranking among PC makers to Rival Acer, Inc., while Hewlett-Packard (HPQ) remains atop the list.

Dell shares fell $1.09, or 6.9%, in pre-market trading Friday.

The Bottom Line
Shares of Dell are off 52-week highs of $17 a share. The stock has technical support in the $13-$14 price area. If the shares can firm up, there could be overhead resistance around the $17-$18 price levels.

This non-dividend paying stock is not currently rated, but experts follow the company closely.