This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EMC Shares Surge

Updated from 9:33 a.m. EDT

SAN FRANCISCO -- Shares of data storage firm EMC (EMC) climbed after the company said third-quarter revenue benefited from continued growth -- albeit at a modest pace -- in sales to financial services firms.

The company's comments bolstered views that EMC's core data storage business remains healthy, and lent credibility to Chief Executive Joseph Tucci's view that the company will "definitely exceed" its full-year financial goals.

In recent trading on Thursday, EMC shares were up $1.71, or 7.6%, to $24.24, despite declines in broad market indexes.

On a conference call with analysts, Tucci said orders from financial services firms grew modestly despite "an air of caution." The company doesn't break out the amount that different industry segments contribute to its sales, but Toni Sacconaghi, an analyst with Sanford C. Bernstein, estimates that financial services firms account for roughly 10% of EMC's business.

Tech purchases from financial services firms have appeared particularly vulnerable to cutbacks because of mounting losses from mortgage-related investments. IBM (IBM), for example, cited credit and mortgage market turmoil as a key factor behind a 13% fall in third-quarter hardware sales.

EMC said that its sales momentum stems from efforts to consolidate storage equipment, strengthen backup and recovery capabilities and comply with regulations such as Sarbanes-Oxley that set high standards for data storage and archiving. With these tailwinds at its back, Tucci now expects that EMC will top its full-year earnings target of 64 cents a share on $12.7 billion in revenue.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs