EMC Corp. Earnings Cheat Sheet: Tops Analysts’ Expectations

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

Results: Net income for EMC Corporation rose to $605.6 million (27 cents per share) vs. $472.5 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 28.2% from the year earlier quarter.

Revenue: Rose 18.2% to $4.98 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EMC reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. Analysts were expecting revenue of $4.92 billion.

Quoting Management: Joe Tucci, EMC Chairman and Chief Executive Officer, said, “I am very pleased with EMC’s execution and solid third-quarter financial performance. Global customer demand for our industry-leading products and services, which led to record quarterly financial results, is clear evidence that EMC is at the center of the most transformative, disruptive and opportunity-rich trends in IT history – namely hybrid cloud computing and the explosion of Big Data. With the strategy, products and momentum in our favor, EMC remains extremely well positioned to help customers accelerate their journey to the cloud, discover the value of Big Data and transform IT into a source of greater efficiency, agility and control.”

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 19.2%, with the biggest boost coming in the second quarter when revenue rose 20.4% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 61% from the year earlier quarter. Over that span, margins have grown on average 2.2 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 28.2% and in the first quarter, the figure rose 28%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 29 cents versus a mean estimate of net income of 27 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 39 cents per share, a drop from 40 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.21 per to share to $1.22.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)