This Day On The Street
Continue to site
ADVERTISEMENT
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

EMC Shares Surge

Updated from 9:33 a.m. EDT

SAN FRANCISCO -- Shares of data storage firm EMC (EMC - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
CSCO $28.89 -0.96%
EMC $26.48 -2.61%
VMW $87.70 0.01%
AAPL $125.80 -2.25%
FB $77.56 -1.59%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs