Dell Technologies Inc. and HP Inc reported quarterly financial results that suggest a long-awaited recovery of the personal computer market is stalling. Dell shares plunged 12% in premarket trading while HP Inc sank nearly 9%.
Dell Technologies Inc. and HP Inc reported quarterly financial results that suggest a long-awaited recovery of the personal computer market is stalling.
Revenue generated by Dell’s PC business declined 1% to $12.1 billion in the fiscal third quarter, falling short of estimates. While sales in HP’s PC unit rose 2% to $9.59 billion in the similar three-month period, that too missed the average analyst estimate.
For the quarter ending in February, Dell gave a revenue outlook of about $24.5 billion. Analysts, on average, projected $25.4 billion. Adjusted earnings will be $2.40 a share to $2.60, compared with the average estimate of $2.66.
HP’s outlook also failed to impress. Earnings, excluding some items, will be 70 cents to 76 cents a share in the period ending in January, the Palo Alto, California-based company said. Analysts, on average, projected 86 cents.