EMC Corporation Earnings Cheat Sheet: Beats Wall Street Expectations

S&P 500 (NYSE:SPY) component EMC Corporation (NYSE:EMC) reported net income above Wall Street’s expectations for the second quarter. EMC Corporation and its subsidiaries deliver and support a range of information infrastructure technologies and solutions.

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EMC Earnings Cheat Sheet for the Second Quarter

Results: Net income for EMC Corporation rose to $546.5 million (24 cents per share) vs. $426.2 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 28.2% from the year earlier quarter.

Revenue: Rose 20.4% to $4.85 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EMC reported adjusted net income of 35 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. It beat the average revenue estimate of $4.73 billion.

Quoting Management: Joe Tucci, EMC Chairman and Chief Executive Officer, said, “Our record-setting performance during the quarter was marked by balanced growth, solid execution and significant technology innovation as customers around the world continue to embrace EMC’s cloud computing and Big Data strategies. It is our firm belief that this strategy is well-placed and underpinned with winning products and services and strategic partners. We remain confident in our ability to continue delivering strong results this year and over the long term. Furthermore, we remain committed to investing heavily to extend our technology lead and help customers and service provider partners accelerate their IT and business model transformations.”

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 20.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 23.5% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.8 percentage point to 59.4% from the year earlier quarter. Over that span, margins have grown on average 2.8 percentage points per quarter on a year-over-year basis.

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

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 24 cents versus a mean estimate of net income of 25 cents 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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(Source: Xignite Financials)