This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

EMC Profit Climbs on Cloud, Big Data

Stocks in this article: EMC IBM VMW

HOPKINTON, Mass. ( TheStreet -- Shrugging off recent tech sector unease, storage giant EMC (EMC - Get Report) reported solid first-quarter results on Thursday.

EMC, which is one of the key players in cloud computing and the emerging big data market, brought in revenue of $5.1 billion, an 11% increase on the prior year's quarter, and roughly in line with analysts' forecasts of $5.12 billion.

EMC

Excluding items, EMC earned 37 cents a share, a 19% hike on the same period last year, and above analysts' estimates of 36 cents a share.

"We are in a time of unprecedented IT and business transformation, propelled by the benefits of cloud computing, Big Data and trust," explained EMC CEO Joe Tucci, in a statement released before market open. "EMC is off to a strong start to 2012 and is exceptionally well-positioned to help customers take advantage of these major transformational shifts."

EMC enjoyed 26% year-over-year growth in its mid-tier storage products, and almost doubled revenue from its Isilon network-attached storage (NAS) hardware. Revenue from the company's RSA security division increased 19% compared to the same period last year.

In contrast, rival IBM (IBM - Get Report), which reported its first-quarter results earlier this week, saw its storage hardware revenue slip 4%.

EMC's numbers were also boosted by a strong quarter from its VMware (VMW - Get Report) virtualization subsidiary, which reported after market close on Wednesday. The storage specialist noted that VMware revenue grew 25% year over year.

The storage specialist predicted consolidated revenue that is expected to meet or potentially exceed $22 billion in 2012. Analysts surveyed by Thomson Reuters have forecast fiscal 2012 revenue of $22.24 billion for EMC.

Investors, however, were unmoved by EMC's results, pushing the company's shares down 69 cents, or 2.37%, to $28.45 in premarket trading.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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