Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  EMC Corporation    EMC

Delayed Quote. Delayed  - 09/06 10:00:55 pm
29.05 USD   +0.97%
04:09p EMC : Dell EMC launches Cloud Ecosystem Hub
12:42p EMC : Dell EMC Launches Hub For Cloud Service Providers
03/26 EMC : Dell EMC launches EMEA Cloud Ecosystem Hub
SummaryQuotesChartsNewsCalendarCompany 
News SummaryMost relevantAll newsSector newsTweets 

EMC Corporation : EMC's Profits Rise, But Revenue Falls Short Of Views

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/19/2012 | 02:44pm CEST

--EMC reports better-than-expected earnings

--1Q revenue is less than analysts projected

--Storage company reiterates guidance for full year but says results could top its estimates

(Updates throughout with additional details and analyst comments.)

 
   By Shara Tibken 
   Of  
 

EMC Corp.'s (EMC) first-quarter earnings rose 23% amid strong demand for its mid-range storage products, but revenue fell slightly short of expectations.

EMC's revenue topped analysts' projections throughout 2011 as the company benefited from increased demand for its data center products, such as storage. But the first quarter's revenue of $5.09 billion was a little weaker than the $5.12 billion expected by analysts, according to Thomson Reuters.

FBR Capital Markets analyst Daniel Ives said sales of EMC's high-end storage line likely were softer than in the past few years as EMC increases focus on its mid-range products.

The Hopkinton, Mass., company didn't disclose sales from such products in its earnings report. However, EMC said mid-tier storage revenue jumped 26% from the previous year.

"To some extent, they're going through a natural transition where more growth is coming from the mid-tier as well as from acquisitions," Ives said. "But we can't just look at a one quarter miss by a hair and say that puts a dent in the story."

Shares, up 35% in the year-to-date through Wednesday's close, slid 2.5% to $28.40 in premarket trading.

EMC--which sells data-center products such as storage security--has posted strong results of late as customers seek efficient ways to store and access massive amounts of documents and media. The company largely has avoided softness in tech spending in part because of its exposure to cloud computing and virtualization, which make data centers more efficient.

The first-quarter results from EMC echo those from data center giant International Business Machines Corp. (IBM) earlier this week. The company on Tuesday reported its quarterly profit rose 7.1%, but a 6.7% decline in hardware sales continued to drag down revenue growth. The company blamed the second straight quarterly hardware sales decline on a difficult year-ago comparison.

While EMC's first-quarter revenue wasn't as strong as some analysts hoped, the company reiterated its guidance for the full year. The company, however, noted its results could be stronger than its current estimates.

"Based upon our strong start to the year and our opportunity, we now have greater confidence in our ability to meet and potentially exceed our 2012 financial goals for consolidated revenue, non-GAAP EPS and free cash flow," Chief Financial Officer David Goulden said.

EMC reported a profit of $586.8 million, or 27 cents a share, up from $477.1 million, or 21 cents, a year earlier. Excluding items such as stock-based compensation, amortization, restructuring and acquisition charges, per-share earnings rose to 37 cents from 31 cents.

Analysts expected adjusted earnings of 36 cents a share.

Operating margin rose to 16.7% from 14.6%.

Product sales increased 4.7%, while services revenue soared 21%.

EMC reported revenue from its key information-infrastructure business rose 7.3% to $4.04 billion, with its with its information-storage sales up 7.3% and the RSA information-security business growing 19% from the previous year.

Along with its strength in its traditional data-storage business, EMC has benefited from its majority ownership of VMware Inc. (VMW). The company dominates the market for virtualization software, which allows users to run multiple computers' operations on a single machine. On Wednesday, VMware reported its first-quarter earnings rose 52% and revenue climbed 25% to $1.06 billion.

Stifel Nicolaus analyst Aaron Rakers noted it was "clear that VMware's strong results represented the driver of EMC's bottom-line upside."

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

--Melodie Warner contributed to this report.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on EMC CORPORATION
04:09p EMC : Dell EMC launches Cloud Ecosystem Hub
12:42p EMC : Dell EMC Launches Hub For Cloud Service Providers
03/27 EMC : CONTRACT AWARD - 70-- Maintenance and support for EMC's documenttum
03/26 EMC : Dell EMC launches EMEA Cloud Ecosystem Hub
03/25 EMC : Dell EMC and Intel launch cloud service provider ecosystem
03/24 EMC : Dell EMC introduces cloud ecosystem hub
03/22 EMC : Dell EMC, Cisco, HPE top cloud infrastructure market
03/21 Disk Storage Systems Market 2017 - IBM, EMC, Dell, Hewlett Packard (HP), Fuji..
03/20 EMC : Dell EMC muscles in on cloud infrastructure leaders HPE and Cisco
03/17 EMC : Dell EMC, Prysm To Strengthen India`s Smart City Ecosystem
More news
Sector news : Computer Hardware - NEC
03/27DJAPPLE : Gets a Patent Win in China -- WSJ
03/26DJAPPLE : Bites Back With iPhone Court Win in China
03/25 APPLE : Chinese court rules in favour of Apple in local design patent disputes
03/24DJAPPLE : Today's Top Supply Chain and Logistics News From WSJ
03/23DJMARKET SNAPSHOT : Dow Edges Down For 6th Straight Decline After Health-care Vote..
More sector news : Computer Hardware - NEC
News from SeekingAlpha
2016 BLOOMBERG : Dell Technologies to cut 2K-3K jobs post-EMC buyout
2016 Worried About A Value Crash? 4 Tips To Lighten The Blow
2016 Champion Dogs Reveal 35 Safe Catches Of 50
2016 Bank Of America M&A Imminent
2016 WALL STREET BREAKFAST : Apple Event On Deck
Advertisement
Chart EMC CORPORATION
Duration : Period :
EMC Corporation Technical Analysis Chart | EMC | US2686481027 | 4-Traders
Full-screen chart
Technical analysis trends EMC CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Managers
NameTitle
David I. Goulden President
Denis G. Cashman Chief Financial & Accounting Officer
John Joseph Roese Chief Technology Officer & Senior Vice President
Mary Louise Krakauer Chief Information Officer
Michael W. Brown Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
EMC CORPORATION0.00%0
APPLE INC.21.64%739 133
HEWLETT PACKARD ENTERP..-1.82%37 825
HP INC15.90%29 081
SEAGATE TECHNOLOGY PLC17.66%13 256
PEGATRON CORPORATION--.--%7 504
More Results