NEW YORK (TheStreet) -- Investors rewarded EMC (EMC) and VMWare (VMWare), following an announcement the company's made to swap executives. The two tech companies also released preliminary earnings results after the closing bell on Tuesday.
Pat Gelsinger, currently EMC president and COO of Information Infrastructure Products, will succeed VMware's Paul Maritz as CEO come September. Maritz will remain on the VMware Board of Directors and join EMC as Chief Strategist, reporting to CEO Joe Tucci. EMC's current CFO, David Goulden, will be EMC's COO starting in September.
EMC reported earnings of 39 cents a share on revenue of approximately $5.31 billion. The earnings and revenue for the quarter were up 10% and 11%, respectively, over the same quarter last year. VMWare reported revenue of $1.123 billion, up 22% over the prior year's quarter.
Shares of EMC soared 9.03% to $24.99, while VMWare jumped 12.27% to $90.14.Check Point Software (CHKP) rose sharply after the Israeli company released its second-quarter earnings, and expanded its share repurchase program early on Wednesday morning. The Internet security company reported earnings of 77 cents a share on revenue of $328.6 million, representing a 9% increase in revenue year-over-year. The stock climbed 9.27% to $49.85 by mid-day. BMO analyst Ambrish Srivastava reduced his estimates of Intel (INTC) through 2013 following its second-quarter earnings report, but maintained his "market perform" rating and $24 price target. "While Intel lowered its revenue outlook for the full year, the company kept the GM [gross margin] target intact. However, we note that baked into the FY guidance is an assumption that 4Q will be a seasonally normal quarter for the company. We see a high likelihood of another lower-than-normal quarter in 4Q," Srivastava wrote in a note to clients. For 2012, Srivastava cuts his earnings per share forecast from $2.47 to $2.40. He cut his fiscal year 2013 estimates from $2.45 to $2.38 per share. Shares rose 3.59% to 26.29% on Wednesday. Groupon (GRPN) was a rare market loser on Wednesday, slipping 0.16% to $7.09. The stock has declined over 65% year-to-date. --Written by Nathalie Pierrepont in New York. >To submit a news tip, send an email to: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. >Contact by Email. Follow @nrpierrepont
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