ROUND ROCK, Texas, Wed May 23, 2012 – Dell Inc.’s weak forecast and disappointing quarterly results triggered price target cuts from a slew of brokerages on the stock of the world’s No.3 personal computer maker.
Shares of the company were down about 13 percent at $13.13 in premarket trading.
Dell said it expects its revenue to grow 2 to 4 percent to between $14.7 billion and $15 billion for the current quarter, well short of the $15.4 billion analysts had been expecting on average.
A cautious IT spending environment and challenges in its PC business will keep dogging Dell in fiscal 2013, BMO Capital Markets analyst Jung Pak wrote in a research report and cut the price target on the stock to $16 from $18.
Dell’s first-quarter earnings and revenue were also lower than expected, hurt by weak sales to consumers, large enterprises and government units. Mobile devices like the iPad have hit demand for PCs.