Shares of Dell Inc. declined nearly 2%, and was in danger of extending its losing streak to six sessions, after UBS analyst Benjamin Reitzes cuts his fiscal second-quarter earnings and revenue forecast and his stock price target, citing evidence that sales were slowing further given weakness in Europe and weaker demand in the corporate PC and servers markets.
Reitzes now expects earnings of for the quarter ending July of 31 cents a share and revenue of $14 billion, vs. his prior forecasts for earnings of 33 cents a share and revenue of $14.2 billion. He lowered his stock price target to $24 from $26. "We believe Dell continues to be impacted by competition and adverse mix shifts within the PC market," Reitzes said. The stock was last down 1.8%, or 43 cents, at $22.99. The stock had hit a 3 1/2-year low of $22.96 in intraday trading on Tuesday, before bouncing slightly to close down 6 cents at $23.42, its fifth-straight loss.
Dell will report earnings on August 17. Wall Street's current estimate is for 32 cents a share. Last year, Dell earned 38 cents a share.
DELL 1-yr chart: