| 6.8°C Dublin

Dell profit forecast misses estimates of Wall Street analysts

 

Close

Dell Technologies chief executive Michael Dell

Dell Technologies chief executive Michael Dell

Dell Technologies chief executive Michael Dell

Dell Technologies has given a profit forecast that falls short of Wall Street estimates, in a sign weaker corporate demand for personal computers will take a toll on the hardware giant.

Profit, excluding some items, will be $5.90 (€5.40) to $6.60 a share in fiscal 2021, chief financial officer Tom Sweet said.

Analysts, on average, projected $6.72, according to data compiled by Bloomberg.

Dell expects $92bn to $95bn in fiscal 2021 revenue. The sales midpoint topped the average analyst estimate of $93.1bn.

A surge of corporate upgrades to PCs that has fuelled robust demand will probably end in the second half of the fiscal year, Sweet said. Chief executive Michael Dell has sought to leverage the different parts of his empire to sell clients higher-value packages of hardware and software. But global economic issues, including trade conflicts, have slowed sales of equipment for data centres, particularly in China.

Sweet said server demand would bounce back during the year, which will help overall revenue.

Dell employs 2,500 people across campuses in Limerick, Cork, and Cherrywood, Dublin.

Unlike competitors such as Microsoft and HP, Dell did not account for any economic effect from the coronavirus in its forecast.

Bloomberg

Sunday Indo Business