Why Dell Stock Just Dropped 7.5%
Shares of computer-manufacturer Dell Technologies (NYSE: DELL) crashed 7.5% in 11:35 a.m. ET trading Friday after the company reported Q4 earnings that fell short of analyst targets.
Heading into Q4, Wall Street had forecast that Dell would earn $1.95 per share, pro forma, on sales of $27.4 billion in the quarter. Last night, Dell beat that sales estimate by a bit -- $28 billion in quarterly sales -- but fell way short on profits, earning just $1.72 per share, pro forma.
Dell grew its revenue 16% in Q4, with operating income up 13% and net income ... well, unfortunately, there wasn't any net income. Not only did Dell miss the pro forma earnings target that Wall Street set, but its profit, when calculated according to generally accepted accounting principles (GAAP), was actually negative -- a $0.04 per-share loss.
Source Fool.com
