Dell has slashed its 2012 revenue forecast, as an already weak outlook for technology spending worsened.
The company cut its full-year revenue growth estimate from 5-9% to just 1-5%, citing growing uncertainty about whether government and corporate spending on everything from servers to software would hold up in the face of flagging economic growth.
Dell’s move did not bode well for rivals such as HP, which is announcing results tomorrow after several disappointing quarters.
“We are going to see similar trends” with HP, said Brian Marshall, analyst with Gleacher, noting “maybe some weakness on the topline.” He also highlighted a “pause” in technology business spending.
By comparison Dell had consistently beaten Wall Street expectations this year, a result of expanding its footprint in higher-margin businesses such as servers, storage and computer services.
“From a market standpoint, clearly there’s a different demand dynamic as you think about revenue growth,” Dell chief financial officer Brian Gladden. “It’s a bit of an uncertain environment.”
Disclaimer: Some pages on this site may include an affiliate link. This does not effect our editorial in any way.
