Weak Outlook Forces Cut In 2012 Income Forecast
Source: Agencies |
August 18, 2011, Thursday
|
Print Edition
Print Edition
DELL Inc slashed its 2012 revenue forecast as an already weak outlook for technology spending this year worsened.
The No. 2 personal computer maker on Tuesday cut its full-year revenue growth estimate to 1 to 5 percent, from 5 to 9 percent previously, citing growing uncertainty about whether government and corporate spending on everything from servers to software can hold up in the face of flagging economic growth.
Industry executives warn that corporate and government spending may have begun to wane on fears of a second-half economic growth slowdown, while a high jobless rate pressures consumer income.
"We are going to see similar trends" with Hewlett-Packard Co, the world's No. 1 PC maker, said Brian Marshall, analyst with Gleacher & Co, noting "maybe some weakness on the topline."
He also noted a "pause" in technology business spending.
Dell has consistently beaten Wall Street expectations this year, a result of expanding its footprint in higher-margin businesses such as servers, storage and computer services.
The No. 2 personal computer maker on Tuesday cut its full-year revenue growth estimate to 1 to 5 percent, from 5 to 9 percent previously, citing growing uncertainty about whether government and corporate spending on everything from servers to software can hold up in the face of flagging economic growth.
Industry executives warn that corporate and government spending may have begun to wane on fears of a second-half economic growth slowdown, while a high jobless rate pressures consumer income.
"We are going to see similar trends" with Hewlett-Packard Co, the world's No. 1 PC maker, said Brian Marshall, analyst with Gleacher & Co, noting "maybe some weakness on the topline."
He also noted a "pause" in technology business spending.
Dell has consistently beaten Wall Street expectations this year, a result of expanding its footprint in higher-margin businesses such as servers, storage and computer services.
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