Dell Misstates Financial Reports
Pc maker Dell (DELL) has postponed share repurchases due to a government probe into its prior quarters' accounting. The investigation revealed that Dell may have misstated prior financial reports from 2002 to the present. The market reacted negatively to the news with shares falling to 20.77 in pre-trading, a drop of 4.1 percent. In the last year the company's market value has dropped by 37 percent to about $49.2 billion. ENN reported in August that Dell's second fiscal quarter net profit had dropped from $1.02 billion a year ago to $502 million. This equates to a 46 percent drop in earnings per share from 0.41 to 0.22 for the respective quarters. Dell suffered another blow last month when it was forced to recall 4.1 million laptop batteries worldwide that can potentially overheat and pose a fire hazard. It would be prudent to avoid buying DELL until they get a couple quarters of profitability under their belt.
posted by Stock Administrator @ 1:10 AM
Dell Misstates Financial Reports
Pc maker Dell (DELL) has postponed share repurchases due to a government probe into its prior quarters' accounting. The investigation revealed that Dell may have misstated prior financial reports from 2002 to the present. The market reacted negatively to the news with shares falling to 20.77 in pre-trading, a drop of 4.1 percent. In the last year the company's market value has dropped by 37 percent to about $49.2 billion. ENN reported in August that Dell's second fiscal quarter net profit had dropped from $1.02 billion a year ago to $502 million. This equates to a 46 percent drop in earnings per share from 0.41 to 0.22 for the respective quarters. Dell suffered another blow last month when it was forced to recall 4.1 million laptop batteries worldwide that can potentially overheat and pose a fire hazard. It would be prudent to avoid buying DELL until they get a couple quarters of profitability under their belt.
posted by Stock Administrator @ 1:10 AM
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