Dell Stands by 3Q Profit, Sales Forecasts

Share this article:
Dell Computer Corp. surprised investors, the media and Wall Street when it said yesterday that it would meet third-quarter revenue and earnings forecasts.


The Austin, TX, company said in August it was targeting third-quarter earnings of 15 to 16 cents per share on revenue of $7.2 billion to $7.6 billion. Dell's third-quarter period ends Nov. 2.


Company executives cited the strength of Dell's direct business model despite economic and industry challenges but cautioned that one-third of the quarter still remained.


Founder Michael Dell went a step further and said that the company's strategic, operating and financial position was strong. Dell implied that losses by rivals like Compaq Computer Corp., Houston, and other PC makers also have helped the direct marketer.


"We're winning new customers at a rapid rate and successfully managing our operating expenses," Dell said in a statement. "Those strengths in the midst of a trying period give us great confidence for the long term."


He expects Dell to gain more market share in all product categories, customer segments and regional markets in the current quarter. Competitive pricing and falling component costs will help build share.


In a conference call Oct. 4 to analysts, Dell executives said demand was sustained by shipments to customers that switched to Microsoft Corp.'s new Windows XP operating system. The company also sold more than 35,000 computers to replace machines lost in the World Trade Center attacks.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.