Forbes - May 28, 2009
"April 1 (Bloomberg) -- Dell Inc., the world’s second- largest maker of personal computers, sold $500 million of five- year notes with a coupon of 5.625 percent, almost a percentage point higher than a similar offering last April."http://www.bloomberg.com/apps/news?pid=20601009&sid=a_n54Iy1alIw
J.P. Morgan analyst Mark Moskowitz lowered his rating on Dell (DELL:
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DELL 9.43, -0.36, -3.7%) to underweight from neutral, saying that a combination of forces are at work that could hamper the company this year.
Dell shares fell 49 cents, or 5%, to $9.30 after J.P. Morgan analyst Mark Moskowitz cut his rating on the PC maker to underweight from neutral.
On Thursday, November 20, 2008 Dell posted their Q3 earnings, beating Reuters' expectations of $0.31 by 6 cents, to post a revenue of $15.2 billion, despite a slowing global industry demand for the month of October.
Dell announces a "further softening" of the technology sector as the company's sales volumes had not recovered from the normal summer lull by mid-september.
For the second quarter of 2008 Dell reported sales of $16.4 billion, a 11% increase in revenue from a year earlier on a 19% increase in unit sales. All of Dell's major products gained market share; highlighted by notebook unit sales increasing 44% and server unit sales increasing 19%. Sales in the BRIC nations were up 53%. However, much of this sales growth was driven by price decreases that the company instituted on the expectation of future cost reductions to be realized later in 2008; as a result, margins declined to 17.2% from 19.9% and operating income dropped 9%.
Dell's quarter earnings increased to $0.38 a share compared to Wall Street's estimate of $0.34 a share. This can be attributed to the drastic makeover plans devised by Michael Dell since he became CEO again a year ago. Increasing domestic consumers sales, such as from kiosks, along with increasing international sales have helped.
Dell's stock price has lost more than 20% in the last fortnight due to concerns about company's profitability and growth outlook in the coming quartners.
Dell's Q3 2007 posted a 8.5% revenue growth and a 27% rise in earnings, but analysts concerns about future profitability has caused Dell shares to drop as much as 15%. Decreased margins and higher operating expenses were a large driver of this concern.
The PC maker states that it expects significant headwinds in the coming quarters in the form of components costs
After beating earnings estimates, Dell anounces that it will cut 10% of its workforce.
Dell's revene drops by 5.1% compared to the previous year
The Labor Department’s producer price index (or PPI) estimate was higher than expected, indicating increased manufacturing costs for firms. In addition, Intel announced that its fourth-quarter net income in 2006 was down 39% from 2005. This announcement caused Dell’s stock to trade lower, as the majority of its products are Intel-based.
Dell’s stock soared on the company’s release of its third-quarter 2006 earnings, which showed a 12% increase in profits.