The business stories that matter, by Fortune's Colin Barr
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November 29, 2007, 4:55 pm

Weak outlook says sell Dell

Dell (DELL) stock tanked Thursday after the PC maker said it continues to struggle against strong competition amid a slowdown in U.S. sales. Dell said third-quarter earnings rose 27% from a year ago, on 9% revenue growth. But Dell’s outlook for the fourth quarter was less than sanguine, with the company highlighting its focus on “strategic priorities that will provide better value to customers while driving a more optimal balance of liquidity, profitability and growth.” Statements like that are never a good sign, because when execs have good news to offer investors they typically don’t hide it behind nonstatements about strategic priorities. And Dell adds that results in coming quarters “could be adversely impacted by a slower decline in component costs and a seasonal shift in mix to U.S. consumer and international regions.”

Bottom line: Expect the company to keep cutting costs while it struggles to fashion a way out of its slow-growth doldrums.

Look, it’s a falling star…no, wait…it’s only Dell stock plummiting in the after-market. Weeeeeeeeeeee.

Posted By Greg Harris, Sturbridge, MA : November 29, 2007 8:21 pm

My apologies. Dell did “tank”. It went down 10% in after-hours trading.

Posted By Jim Fleming, San Diego, CA : November 29, 2007 6:04 pm

What’s going on? Dell didn’t “tank” today. It went up 1.6% on heavier volume.

Posted By Jim Fleming, San Diego, CA : November 29, 2007 6:02 pm

In a world stuck on globalization I find it interesting how you left out the 32% increase in revenue across the sea.

Posted By Jeff, Dallas, Texas : November 29, 2007 5:43 pm
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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