Dell Stock Plunges On Lower Profit

Computer maker Dell Inc. said Thursday that its fiscal second-quarter profit fell 17%, hurt in part by lower prices and restructuring charges. The earnings were short of Wall Street estimates, and Dell shares plunged.

Dell's net income dropped to $616 million, or 31 cents a share, in the quarter that ended Aug. 1, from $746 million, or 32 cents, a year earlier. Sales rose 11% to $16.4 billion, ahead of Wall Street's prediction for $15.9 billion.

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Comments

[castlerider]

Major contributor to the Bush Campaign.
Hundreds of jobs went to India, China, even Ireland. Americans weren't good enough, and wanted too much. Besides, Bush rewarded them for sending jobs overseas!

Way to go, Michael Dell. Still feel like you picked a winner?

[javaman]

or could it be that their computers stink and their once high rated customer service not rots? naaaa, couldn't be obvious things like that, or could it?

[KCFreedom]

Well, better lay off the last of those employees in Austin and Nashville and ship those jobs to China pronto! That'll fix everything.

[DavidMG]

The stock should plunge because their computers are crap. I have a stack of a few year old laptops that are useless. (All right I am slow learner) They have got to start buliding quality back.