Dell Will Report Earnings Early as Icahn Ramps Up Pressure
Reportedly facing disappointing numbers, Dell moves up its earnings release, while Carl Icahn outlines his own slate of director candidates.Dell, in the midst of a bitter custody battle that will help decide its future, will announce quarterly financial numbers five days earlier than scheduled, a move reportedly made because of anticipated poor results. Dell officials announced May 14 that they will announce earnings numbers May 16, rather than the scheduled date of May 21. They did not cite a reason why they made the move, though various reports indicate that Dell executives expect to miss Wall Street estimates and wanted to get the news out as soon as possible. The Wall Street Journal, citing an unnamed source who had been briefed on the results, said Dell will report $14 billion in revenues for the first three months of the year, which is higher than the $13.5 billion expected by financial analysts. However, operating income will come in at about $600 million, below forecasts, the Journal reported. Dell for several years has been hit by the fallout of a slowing global PC market—due in large part to the growing popularity of smartphones and tablets—and the rise of cloud computing, both trends that have hit the company's traditional hardware. Dell officials are working to transform the company into an enterprise IT solutions and services provider, spending billions of dollars to buy vendors in hopes of building up its capabilities in such areas as storage, networking, software and the cloud.
In hopes of accelerating that difficult transformation—and to get away from the Wall Street scrutiny of the company's finances—founder, Chairman and CEO Michael Dell and equity firm Silver Lake Partners in February announced a $24.4 billion bid to buy the world's third-largest PC maker in a leveraged buyout and take it private.