Dell Expects Earnings to Miss Targets

Amid stiffening competition, computer maker Dell Inc. said Monday that its fiscal first-quarter results would miss earnings targets, blaming the shortfall on “pricing decisions.”

The news sent Dell shares falling more than 6% to a 52-week low.

The Round Rock, Texas-based company said it expected to earn 33 cents a share on revenue of about $14.2 billion, compared with analysts’ average estimate of 38 cents a share on revenue of $14.52 billion.

Dell, which sells computers directly to consumers and is the world’s largest PC maker, previously forecast a profit of 36 cents to 38 cents a share, including stock-option costs of 3 cents, on revenue of $14.2 billion to $14.6 billion.

Dell said the shortfall from the previous guidance stemmed primarily from pricing decisions in the second half of the quarter that the company expected would accelerate revenue growth in the future.

During the quarter, Dell aggressively discounted some of its products as it lost ground to rivals.

Dell will report first-quarter earnings May 18.

Dell shares fell 6.1%, or $1.61, to $24.82 on news of the revised guidance in late-session trading. Earlier, the stock rose 75 cents, or almost 3%, to $26.43.