This Day On The Street
Continue to site
ADVERTISEMENT
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

EMC Beats Estimate but Shares Slide on Weak Guidance

NEW YORK (TheStreet) -- EMC (EMC - Get Report) 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.

Must Read: What Does It Take to Sour on the Electric Car Experience?

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EMC $26.46 1.60%
TSLA $257.95 2.00%
YHOO $37.54 -0.78%
AAPL $123.36 0.48%
FB $93.80 -0.39%

Markets

Chart of I:DJI
DOW 17,543.34 +102.75 0.59%
S&P 500 2,079.86 +12.22 0.59%
NASDAQ 5,051.9240 +12.1480 0.24%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs