Dell Faces Pricing Pressures

Dell became the latest tech giant to get hit despite a solid earnings report.

After the close on Thursday, Dell reported first-quarter earnings of 28 cents a share, in line with estimates, while revenues of $11.54 billion beat $11.35 billion forecasts. Dell also reaffirmed second-quarter estimates of 29-cent earnings, and raised revenue guidance to $11.7 billion, above $11.56 forecasts.

But despite the solid results, Dell fell 3% after the close, on top of a 2% decline during the day.

The problem was operating income: Dell reported operating income of $966 million, less than $1.02 billion estimates. Analysts said the company may be facing rising component costs and pricing pressures.

In this market, that’s all it take for investors to sell.

Also after the close, ADIC and BEA missed estimates, while Analog Devices beat estimates and raised guidance.

Stocks were mixed during the day, restrained by higher than expected wholesale prices and weak retail sales.

The Nasdaq gained fractionally to 1926, the S&P 500 lost 1 to 1096, and the Dow fell 34 to 10,010. Volume declined to 1.41 billion shares on the NYSE, and 1.56 billion on the Nasdaq. Decliners led 17-15 on the NYSE, and 17-13 on the Nasdaq. Downside volume was 53% on the NYSE, and 47% on the Nasdaq. New highs-new lows were 16-151 on the NYSE, and 24-48 on the Nasdaq. soared 26% after reporting earnings of 13 cents a share.

Yak Communications jumped 10% on a positive mention in Barron’s.

Sonic gained 5% on a deal with Microsoft .

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