Dell issued its quarterly results earlier today, and, judging by after-hours trading, investors’ initial response was one of disappointment. As of 7:21 pm Eastern, Dell’s share were down 10 percent from their end-of-day closing price.
While Dell’s third-quarter results weren’t terrible — the company met consensus earning expectations and slightly topped revenue projections — margins remain under pressure, and Dell continues to lose ground to HP and others in the consumer PC market in the USA. Dell’s guidance also is murky, clouded by concerns about spending by corporate customers in the beleaguered financial sector and by a slowing decline in the prices the company pays for computer memory and other components.
Notebook sales were up, but they’ll have to continue to improve at at even higher rate if Dell is to take share from HP and Acer worldwide.
Said CEO Michael Dell:
We embarked this year on a long-term strategy to reignite growth and our Q3 results indicate we’re making solid progress through investments in five key business priorities: consumer, emerging countries, notebooks, enterprise and small/medium business.
Based on tonight’s results, Dell is a company in transition, making headway in some areas, less in others, and needing to do more right across the board.