NEW YORK ( TheStreet) -- EMC (EMC) shares slipped before market open on Tuesday after the storage giant's third-quarter results missed Wall Street's top- and bottom-line estimates amid a decline in U.S. federal spending.
The Hopkinton, Mass.-based firm reported revenue of $5.5 billion, an increase of 5% on the prior year's quarter, but below the $5.8 billion consensus estimate.
Excluding items, EMC earned 40 cents a share, flat compared to the same period last year. Analysts surveyed by Yahoo! Finance had predicted earnings of 45 cents a share.
Investors responded negatively to the numbers, pushing EMC's shares down 3.88% to $24.26 in premarket trading."While our financial results for the third quarter were impacted by a decline in U.S. federal spending and a backend-loaded quarter, we achieved almost all of our strategic and operational goals," said EMC Chief Operating Officer David Goulden, in a statement. "We were pleased to see storage demand accelerate in the third quarter excluding US federal, and we think this is an encouraging sign for the storage market overall. Going forward, we remain confident EMC will continue to grow and gain market share." Within EMC's Information Infrastructure business, revenue from emerging storage, which includes the Isilon NAS (Network Attached Storage) product and the company's Atmos object-based storage offering, grew 66% compared to the prior year's quarter. After market close on Monday, EMC's VMware (VMW) subsidiary reported double-digit year-over-year revenue growth. The virtualization trailblazer also beat Wall Street's bottom-line estimate. VMware shares were up 10.61% to $91.42 in premarket trading. EMC's guidance came in weaker than expected. For fiscal 2013, the company expects revenue of $23.25 billion and earnings of $1.80 a share, below Wall Street's estimate of $23.44 billion and $1.86 a share. --Written by James Rogers in New York. Follow @jamesjrogers >Contact by Email.
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