S&P 500 (NYSE:SPY) component EMC Corporation (NYSE:EMC) reported net income above Wall Street’s expectations for the first quarter. EMC and its subsidiaries deliver and support a range of information infrastructure technologies and solutions.
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EMC Earnings Cheat Sheet for the First Quarter
Results: Net income for the computer-storage development rose to $586.8 million (27 cents per share) vs. $477.1 million (21 cents per share) in the same quarter a year earlier. This marks a rise of 23% from the year-earlier quarter.
Revenue: Rose 10.6% to $5.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: EMC Corporation reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. Analysts were expecting revenue of $5.12 billion.
Quoting Management: Joe Tucci, EMC Chairman and Chief Executive Officer, said, “We are in a time of unprecedented IT and business transformation, propelled by the benefits of cloud computing, Big Data and trust. EMC is off to a strong start to 2012 and is exceptionally well-positioned to help customers take advantage of these major transformational shifts. We have never been more excited about what this great technology company can accomplish and look forward to helping our customers drive maximum value from their IT investments in the years ahead.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 20.4% from the year earlier quarter.
The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 32.4% and in the third quarter of the last fiscal year, the figure rose 28.2%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.
Looking Forward: The average estimate for the second quarter remains unchanged at 32 cents a share. The average estimate for the fiscal year is $1.43 per share, a rise from $1.41 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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