EMC Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component EMC Corp (NYSE:EMC) will unveil its latest earnings on Tuesday, October 18, 2011. EMC and its subsidiaries deliver and support a range of information infrastructure technologies and solutions.

EMC Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 30 cents per share, a rise of 20% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 29 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 30 cents during the last month. Analysts are projecting profit to rise by 17.3% versus last year to $1.22.

Last quarter, the company came in at profit of 29 cents per share against a mean estimate of net income of 27 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $4.92 billion in revenue this quarter, a rise of 16.9% from the year ago quarter. Analysts are forecasting total revenue of $19.9 billion for the year, a rise of 16.9% from last year’s revenue of $17.02 billion.

Analyst Ratings: Analysts are bullish on this stock with 27 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the second quarter, profit rose 28.2% to $546.5 million (24 cents a share) from $426.2 million (20 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 20.4% to $4.85 billion from $4.02 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 19.5%, with the biggest boost coming in the most recent quarter when revenue rose 20.4% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 28% in the first quarter and 60.9% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During July 19, 2011 to October 12, 2011, the stock price had fallen $4.53 (-16.5%) from $27.38 to $22.85. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 10, 2011 when shares rose for 10-straight days, rising 11.1% (+$2.71) over that span. It saw one of its worst periods between June 2, 2011 and June 13, 2011 when shares fell for eight-straight days, falling 7.4% (-$2.10) over that span. Shares are down 5 cents (-0.2%) year to date.

(Source: Xignite Financials)

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