EMC Corp Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component EMC Corporation (NYSE:EMC) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: Net income for the data storage devices company rose to $832 million (38 cents per share) vs. $628.6 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 32.4% from the year earlier quarter.

Revenue: Rose 14% to $5.57 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EMC reported adjusted net income of 49 cents per share. By that measure, the company beat the mean estimate of 40 cents per share. Analysts were expecting revenue of $5.49 billion.

Quoting Management: Joe Tucci, EMC Chairman and Chief Executive Officer, said, “EMC had a strong and record-breaking 2011. There’s no doubt that cloud computing is completely transforming the IT industry and that Big Data promises to have a similarly profound effect on transforming the way we work and live. Our customers and partners have these transformations in their sights and are embracing EMC’s vision, strategy and best-of-breed portfolio to capitalize on them and realize the full potential of their information assets.”

Key Stats:

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 18.1%, with the biggest boost coming in the second quarter when revenue rose 20.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 28.2% and in the second quarter, the figure rose 28.2%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the third quarter and by 2 cents in the second quarter.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the first quarter of the next fiscal year is now 28 cents per share, down from 29 cents. The average estimate for the fiscal year has remained at $1.22 per share.

Competitors to Watch: NetApp Inc. (NASDAQ:NTAP), Dot Hill Systems Corp. (NASDAQ:HILL), Western Digital Corp. (NYSE:WDC), Quantum Corporation (NYSE:QTM), Overland Storage, Inc. (NASDAQ:OVRL), Hewlett-Packard Company (NYSE:HPQ), Xyratex Ltd. (NASDAQ:XRTX), ADPT Corporation (ADPT), Intl. Business Machines Corp. (NYSE:IBM), and Brocade Communications Systems, Inc. (NASDAQ:BRCD).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com