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 Corporation Earnings Cheat Sheet
Results: Net income for EMC Corporation rose to $626.34 billion (28 cents per share) vs. $605.6 million (27 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Rose 6% to $5.28 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: EMC Corporation reported adjusted net income of 40 cents per share. By that measure, the company beat the mean estimate of 34 cents per share. Analysts were expecting revenue of $5.29 billion.
Quoting Management: David Goulden, EMC President and Chief Operating Officer, said, “For the third quarter, EMC’s business continued to grow faster than overall IT spending growth and we gained market share in what turned out to be a more cautionary environment than we expected heading into the quarter. We remain extremely confident in our strategy, best-of-breed product portfolio and solid operational and financial model. Going forward, we fully believe that EMC will continue to grow faster than our addressable markets and take share, reinvest for the future, and deliver earnings leverage for shareholders.”
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 18.9% and in the first quarter, the figure rose 23%.
Revenue has risen for the last four quarters. Revenue increased 9.6% to $5.31 billion in the second quarter. The figure rose 10.6% in the first quarter from the year earlier and climbed 14% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 32 cents versus a mean estimate of net income of 33 cents per share.
Looking Forward: The average estimate for the fourth quarter is steady at 46 cents a share. The average estimate hasn’t changed from $1.42 per share for the fiscal year.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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