Dell's in the Doldrums: Tech Weekly
NEW YORK ( TheStreet) -- Earnings season is winding down, with a few notable names reporting this week. Dell (DELL) offered a bleak tone, while Cisco (CSCO) was slightly more upbeat on the state of its business.
The Round Rock, Texas-based PC maker reported adjusted third-quarter earnings of 39 cents a share, missing the Thomson Reuters analyst consensus of 40 cents.
Dell's revenue for the quarter was $13.7 billion, 11% lower than the year-earlier quarter and short of the $13.89 billion analysts polled by Thomson Reuters were expecting. The top line was pressured by falling desktop and mobility revenue.
Dell is in the process of turning itself around, as it becomes less PC-centric , but the process is taking longer than expected.
Shares of Dell lost 5.9% over the course of the week to close at $8.84.
Cisco, on the other hand, beat Wall Street expectations, and sounded upbeat during its conference call relative to expectations.
The networking giant reported non-GAAP earnings of $2.57 billion, or 48 cents a share, on revenue of $11.88 billion, up from a year-ago equivalent profit of $2.32 billion, or 43 cents a share, on revenue of $11.27 billion. Analysts polled by Thomson Reuters were looking for earnings of 46 cents a share on revenue of $11.77 billion.
Cisco provided healthy guidance, predicting revenue between $11.9 billion and $12.1 billion and earnings of 47 to 48 cents a share, as the company's long-term strategy seems to be working. The current consensus view calls for revenue of $12.06 billion and earnings of 48 cents a share.
Cisco enjoyed a strong week, gaining 6.96% to close at $17.99.
Aside from earnings, executives made the majority of the news this week in tech, as some key managers quit, and one made her first snafu since taking over a company.
Mayer came under attack on Twitter, receiving several tweets from users expressing their disappointment (including yours truly), as they could not set their lineups in time for Sunday's NFL games.
Yahoo! offered an olive branch to users on Wednesday, sending out an email offering an explanation, as well as ways to make up for the outage.
Shares of Yahoo! gained 3.5% this past week to finish at $17.86.
The software giant's CEO Steve Ballmer thanked Sinofsky for his contributions, adding, "To continue this success it is imperative that we continue to drive alignment across all Microsoft teams, and have more integrated and rapid development cycles for our offerings."