Dell (NASDAQ:DELL) shares were crashed over 13 percent after its first quarter earnings missed expectations and the company offered no earnings per share guidance. In the first quarter, its earnings per share dropped to $0.43 from $0.55 while revenue fell 4 percent to $14.42 billion thanks to tablets taking a bite out of notebook sales, price competition and an inefficient sales structure.
After Dell, investors will now keep a close watch for Hewlett-Packard’s (NYSE:HPQ) second quarter earnings that will come after the bell on Wednesday. Analysts have forecast that earnings per share will fall to $0.91 from $1.24 with revenue dropping 5.4 percent to $29.9 billion. Hewlett Packard is also likely to announce a restructuring plan that will include lay offs of more than 25,000 employees.
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Morgan Stanley (NYSE:MS) has been subpoenaed by Massachusetts’ top securities regulator over allegations that the bank informed certain clients that its analyst had cut his revenue estimate for Facebook (NASDAQ:FB). The investigation will join ones by Finra and the SEC. According to Business Insider, estimates were cut on the Facebook order, an assertion that was noted by a May 11 Bloomberg report.
RailAmerica (NYSE:RA) shares increased 10.7 percent in post-market trading on Tuesday after responsding to market rumors that its board is looking at strategic alternatives such as a company sale. Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB) is supposedly interested in buying the company, which was a $1.1 billion value with its majority-owner Fortress Investment.
SAP (NYSE:SAP) is making additional advancements into cloud-computing with its $4.3 billion Ariba (NASDAQ:ARBA) acquisition, a major developer of networking and online commerce software. SAP may have to endure a bidding war with Oracle (NASDAQ:ORCL), according to Cross Research analyst Richard Williams in a Reuters report, as numerous Ariba customers use Oracle’s services.
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