The storage giant posted revenue of $5.39 billion, up from $5.1 billion in the prior year's quarter, but below analysts' forecasts of $5.42 billion.
Excluding items, EMC earned 39 cents a share, up from 37 cents a share in the prior year's quarter. Analysts surveyed by
Yahoo! Finance were looking for earnings of 40 cents a share.
EMC also announced plans to buy back $1 billion of the company's common stock in 2013.Investors were underwhelmed by the results, pushing EMC's shares down 1.61% to $22 in premarket trading. Revenue from EMC's Information Storage business grew 3% year over year, with high-end storage sales climbing 10% from the year-ago quarter. The company's RSA Security division grew its revenue 12% over the same period.
The Hopkinton, Mass.-based firm also reaffirmed its 2013 outlook, predicting revenue of $23.5 billion and earnings, excluding items, of $1.85 a share. Analysts surveyed by Yahoo! Finance are looking for sales of $23.46 billion and earnings of $1.86 a share. After the markets closed Tuesday, EMC's VMware (VMW) subsidiary reported 13% year-over-year revenue growth, although the virtualization specialist's shares fell on weaker-than-expected revenue guidance. VMware shares were off 5.81% to $71.30 before market open. Early on Wednesday, GE (GE) also announced plans to make a strategic investment of about $105 million in Pivotal, a specialist cloud company created by EMC and VMware. GE's investment represents a 10% equity stake in the company. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV