Dell Inc. forecast fiscal first-quarter revenue that missed analysts' estimates as lackluster demand for personal computers and competition from Apple Inc. eroded growth.
Revenue for the period ending in April will decrease 7% to $14.9 billion, Dell said Tuesday. That missed analysts' average estimate of $15.1 billion, according to data compiled by Bloomberg. Per-share earnings excluding certain items will exceed $2.13 in fiscal 2013, compared with analysts' $2.06 estimate.
The company's shares rose 5 cents to $18.21.
"When do we see revenue growth for the company start to show up?" said Abhey Lamba, an analyst at Mizuho Securities USA Inc. in New York. "They've been able to grow earnings because of cost management and supply-chain improvements. But you can do that for only so long. At a certain point, revenue needs to start growing or else earnings will come down."
Dell, the third-largest maker of PCs, is suffering from competition with Apple's Macs and iPads at the high end of the market and Lenovo Group Inc. and Acer Inc. at the low end.