Dell falls as parts shortage weighs on forecast By Investing.com

0

© Reuters.

By Dhirendra Tripathi

Investing.com – Dell Technologies Inc. (NYSE:) stock fell 7.3% in premarket trading on Friday after citing tough market conditions due to a shortage of parts.

This lack of component availability led him to a disappointing forecast of $1.25 to $1.50 in adjusted earnings per share for the period ending April, down sequentially.

The company expects the PC backlog to grow in the current quarter as chips and other key components remain in short supply. It shipped 17.2 million PCs in the fourth quarter, up 9%.

Parts shortages have been a recurring problem among manufacturers of laptops, cell phones and other gadgets for over a year. While big players like Dell should now overcome the challenges, that doesn’t seem to be happening.

“We expect our ISG backlog to remain strong for at least the first half of the year as parts shortages continue,” said Vice President and Co-Chief Operating Officer Jeff Clarke. when calling for results.

The Infrastructure Solutions Group (ISG) vertical is home to the company’s server, networking and storage businesses. Business revenue rose 3% in the fourth quarter to top $9 billion.

Dell continues to fight soaring raw material and logistics costs with price hikes. Booming demand for its machines and price increases have boosted its annual revenue to more than $101 billion, a lifetime record.

Revenue at Client Solutions Group, home to its hardware business, jumped 26% to $17 billion, with demand coming from both businesses and individuals. The company said its PC business gained market share in 32 of the past 36 quarters.

rose 16% to $28 billion. Adjusted profit rose 2% to $1.4 billion.

Warning: Merged media would like to remind you that the data contained in this site is not necessarily in real time or exact. All prices for CFDs (stocks, indices, futures) and Forex are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price, which which means that the prices are indicative and not suitable for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur due to the use of this data.

Merged media or anyone involved with Fusion Media will accept no liability for any loss or damage resulting from reliance on the information, including data, quotes, charts and buy/sell signals contained in this website . Please be fully informed of the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investment possible.

Share.

Comments are closed.