EMC Corporation Stock Buy Recommendation Reiterated (EMC)
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- EMC CORP/MA has improved earnings per share by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EMC CORP/MA increased its bottom line by earning $1.10 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($1.72 versus $1.10).
- EMC's revenue growth trails the industry average of 23.4%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $1,237.03 million or 16.32% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.26%.
- The gross profit margin for EMC CORP/MA is rather high; currently it is at 69.70%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EMC's net profit margin of 12.20% significantly trails the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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