This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EMC Beats Estimate but Shares Slide on Weak Guidance

Stocks in this article: EMC VMW

NEW YORK (TheStreet) -- EMC (EMC) beat Wall Street's top-line first-quarter estimates, although the storage specialist's shares slipped on weaker-than-expected earnings guidance.

The Hopkinton, Mass.-based company reported revenue of $5.5 billion, an increase of 2% on the same period last year and above analysts' estimates of $5.43 billion.

Excluding items, EMC earned 35 cents a share on net income of $728 million, down from 39 cents a share in the prior year's quarter and net income of $850 million; earnings were in line with Wall Street's estimate. EMC's earnings exceeded the company's guidance by a penny a share.

Investors, however, were underwhelmed by EMC's earnings outlook, pushing the firm's shares down 3.18% to $25.91 in premarket trading on Wednesday.

For fiscal 2014, EMC expects sales of $24.58 billion and earnings of $1.90 a share. Analysts surveyed by Yahoo! Finance are looking for revenue of $24.51 billion and earnings of $1.94 a share.

EMC generated $1.3 billion in operating cash flow and $946 million in free cash flow during the quarter, ending the first quarter with $15.3 billion in cash and investments.

Revenue from EMC's Information Infrastructure business, however, declined 3% year over year, although the company's Emerging Storage revenue climbed 81% over the same period and its Pivotal big data business enjoyed 41% growth. Revenue from EMC's VMware (VMW) subsidiary gained 16% from the prior year's quarter.

The company announced a work force restructuring effort earlier this year.

"EMC is at the threshold of expansive opportunity," wrote EMC Chief Financial Officer David Goulden, in a statement, "While planned business practice changes had a negative impact on year-over-year revenue and EPS growth in the quarter, we are very confident we are on the right track with our Federation model and technologies."

EMC has been touting its "Federated" business model as a way to boost revenue by tapping into enterprise IT and business needs. This includes the company's Information Infrastructure division, virtualization specialist VMware and its Pivotal technology.

-- Written by James Rogers in New York.

>Contact by Email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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