Weak Dell outlook raises concerns about PC rebound

Dell Inc. forecast fiscal first-quarter revenue below Wall Street’s expectations, stoking fears the PC industry has not fully emerged from its downturn and sending the company’s shares more than 4 percent lower.

The world’s No. 3 PC maker projected sales would be down 7 percent this quarter from the previous quarter, when it posted revenue of $16 billion. That translates into about $14.9 billion, below the average forecast for roughly $15.2 billion.

PC makers have grappled with slackening demand as mobile devices such as Apple Inc.’s iPad erode market share, while a shortage of hard drives after flooding in Thailand crimped supply.

Revenue in Dell’s fiscal fourth quarter was up 2 percent, at $16 billion, in line with the average analyst estimate of $15.96 billion according to Thomson Reuters I/B/E/S.

Net income slid 18 percent, to $764 million, or 43 cents for the period, from $927 million, or 48 cents a year earlier. Excluding one-time items, it posted earnings per share of 51 cents, a penny below the 52 cents expected.

For fiscal 2013, the company expects non-GAAP earnings per share to exceed $2.13.

Dell’s large-enterprise business held up well, increasing sales 5 percent in the quarter to $4.9 billion, as corporations continued to upgrade aging hardware.

Shares of Dell, which vies with market-leading Hewlett Packard, slid to $17.47 in extended trading after closing on the Nasdaq at $18.21.