Dell 2012 Sales Forecast

SAN FRANCISCO (Reuters) - Dell Inc. reduced its 2012 revenue forecasts that the outlook for consumption is already low in the years technology has worsened, sending its shares more than 7 percent lower.

No. 2 PC maker on Tuesday cut its whole year estimated revenue growth of only 1 to 5 percent, from 5 to 9 percent previously, citing heightened uncertainty over whether the government spending and businesses throughout from the server software performs in the face of signs of economic growth.

Dell Movement does not bode well for rivals like Hewlett-Packard shares of HP Co., a diversified hardware and services provider Dell and more dependent on consumer, fell 1.3 percent.

Industry leaders warn that companies and public spending may have started to decline in fear of a slowdown in growth in the second half, while the consumption-income high unemployment pressure.

HP, the world's leading manufacturer of PC # 1, fighting for a turnaround after several disappointing quarters, will report its quarterly results on Thursday.

"We're going to see similar trends," HP said Brian Marshall, an analyst at Gleacher & Co., says: "Perhaps some of the weakness in top line."

He also noted a "pause" in the technology business expenses.

The company founded by Michael Dell has beaten Wall Street expectations this year due to business expansion outside the upper tread, such as servers, storage and services.

"From a market perspective there are clearly a different dynamic than we think demand for revenue growth," Dell CFO Brian Gladden said in an interview. "It 'a little' uncertain."

Dell slid 7.65 percent after the $ 14.60 an hour from the end of $ 15.80 on Nasdaq.

And the bar falls

Before results Tuesday, many analysts had already lowered their forecasts for the calendar year 2011 as global markets tanked and save on their way to the troubled waters. Companies like Dell may be forced to reduce their annual targets as demand decreases.

During the day the annual analysts' in the month of June, the leaders have pledged to maintain the pace of acquisitions - was $ 960 million purchase of Compellent in February - as well as secure access to corporate margins.

But Wall Street on Tuesday, focused on anemic sales growth of 22.5 percent regardless of the gross margin in the second quarter, which actually exceeded analysts 'expectations' more than a full point.

Dell, which in May forecast of government spending and a strong back to school a good season, recorded sales of nearly $ 15.7 billion in its fiscal second quarter ended July.

That little was $ 15.76 billion average forecast of Wall Street analysts polled by Reuters, Thomson I / B / E / S

It added that sales this quarter are likely to remain flat in recent quarters.

Dell reported net income of approximately $ 890 million, or 48 cents per share for the quarter ended in July, compared with $ 545 million or 28 cents a share, a year earlier. Excluding certain items, gained 54 cents per share.

Analysts had expected 49 cents, according to Thomson Reuters I / B / E / S, but it was not immediately clear if this estimate is comparable.