Dell Q3 Earnings Drop 5 Percent On Soft Revenue

Dallas, TX (AHN) - Dell Inc. announced Thursday third quarter earnings fell 5 percent as the company saw revenue dip due to falling PC demand.

The PC maker posted third quarter earnings of $727 million or 37 cents a share, down from $766 million or 34 cents a share in the same period a year ago. Per share earnings were higher due to Dell buying back a large portion of shares.

Revenue dipped 3 percent to $15.16 billion. The result was short of analyst estimates for $16 billion in revenue, according to Thomson Reuters.

Sales from outside the U.S made up 48 percent of Dell's revenue. However, the company saw its share of worldwide PC shipments fall below 14 percent in the third quarter.

"We expect the challenging environment to continue," Dell Chief Financial Officer Brian Gladden said, according to the Associated Press.

Dell has drastically reduced its overhead in 2008 through cost cuts and job cuts. The company has cut nearly 8,900 jobs in the past year.

The company did not offer guidance for its fourth quarter, but analysts have estimated revenue at roughly $15.92 billion.

Shares of Dell rose 5 percent in Thursday after hours trading to $10.30.