The top performing stock of the 1990s continues to struggle. Dell Computer announced both earnings and revenue will be below prior forecasts.
Earnings for the quarter have been cut to 33 cents, down from previous forecast of 36 to 38 cents a share. Revenue for the quarter is now expected to be ~$14.2 billion, the low point of previous estimates of $14.2 billion to $14.6 billion.
We previously highlighted the ongoing decline of the formerly vaunted and rightly famous Dell customer service, which now aspires to be merely average or worse.
Apple passed Dell in market cap back in January 06, and they have jostled back and force for cap leadership since then. Once Dell reopens, I would expect to see Apple leap into the lead by a wide margin over Dell cap wise, for the foreseeable future (or until Apple lowers guidance).
Dell halted after the close, $26.43 last . . .
UPDATE: May 8, 2006 4:32pm
Dell Inc. shares re-opened down 4.7% at $25.20, and fell as low as 24.81 in after-hours trading…Ouch.
UPDATE 2: May 9, 2006 6:22am
This chart is a pretty convincing argument why investors should not fight a major trend:
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