Dell shares slide on forecast miss, CFO to retire

Dell also announced that 26 year veteran Tom Sweet will retire as CFO during the fiscal second quarter and be replaced by Yvonne McGill

Dell Technologies issued a profit and revenue forecast for the current-quarter that is below Wall Street estimates.

Dell is the latest victim of the ongoing demand slump in its PC business.

The news sent shares of Dell down more than 3% in premarket trading, after getting an initial boost on better-than-expected quarterly results.

While the company has seen a slowdown in PC business, demand for its enterprise and consumer businesses has been strong.

DELL TO CUT 6,650 JOBS AMID DIMINISHING DEMAND FOR COMPANY'S COMPUTERS

A Dell logo on a laptop

Dell Technologies shares slipped after a profit and revenue forecast disappointed. (Dell Technologies)

Dell forecast first-quarter revenue to decline between 17% and 21%. Analysts were looking for it to be down by 17.4%, according to Refinitiv data.

The company also expects quarterly earnings per share of 80 cents, plus or minus 15 cents, below expectations of $1.25.

Dell's full-year profit and revenue forecast also disappointed Wall Street even as the lifting of lockdowns in China were expected to ease supply chain pressures and reduce component and freight costs.

Michael Dell

Michael Dell is the founder, chairman, and CEO of Dell Technologies. (AP / AP Newsroom)

ARE TECH LAYOFFS THE CANARY IN THE US JOBS MARKET?

Separately, Dell said Chief Financial Officer Tom Sweet would retire by the end of its fiscal second quarter, and named company veteran Yvonne McGill as his successor.

For its fiscal fourth quarter, Dell reported revenue of $25 billion, down 11% from a year earlier. 

Dell CFO Tom Sweet

Dell said Chief Financial Officer Tom Sweet would retire by the end of its fiscal second quarter. ((Photo by Aniruddha Chowdhury/Mint via Getty Images) / Getty Images)

It did however top the forecast range of $23 billion to $24 billion and Street consensus at $23.4 billion. 

US AIMS TO CREATE SEMICONDUCTOR MANUFACTURING CLUSTERS WITH CHIPS ACT FUNDS

Ticker Security Last Change Change %
DELL DELL TECHNOLOGIES INC. 145.06 -3.46 -2.33%

Adjusted earnings came in at $1.80 per share, above estimates for $1.65 per share.

Reuters contributed to this report.