EMC Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component EMC (NYSE:EMC) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. EMC and its subsidiaries deliver and support a range of information infrastructure technologies and solutions.

EMC Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 43 cents per share, a rise of 2.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 44 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 43 cents during the last month. Analysts are projecting profit to rise by 9.6% compared to last year’s $1.37.

Past Earnings Performance: The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 32 cents per share against an estimate of profit of 34 cents per share. The quarter before that, it missed forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $5.98 billion in revenue this quarter, a rise of 7.4% from the year-ago quarter. Analysts are forecasting total revenue of $21.66 billion for the year, a rise of 8.2% from last year’s revenue of $20.01 billion.

A Look Back: In the third quarter, profit rose 3.4% to $626.3 million (28 cents a share) from $605.6 million (27 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 6% to $5.28 billion from $4.98 billion.

Here’s how EMC Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

emc

Analyst Ratings: With 27 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 23% in the first quarter and 18.9% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14% in the fourth quarter of the last fiscal year, 10.6% in the first quarter and 9.6% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.15 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.19 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.2% to $9.67 billion while assets rose 1.6% to $11.11 billion.

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