EMC Shares Rise as Revenue Climbs

The stock gains 3.8% despite an earnings shortfall.
By Robert Holmes ,

EMC

(EMC)

posted a decline in first-quarter earnings Wednesday, but shares traded higher as the company beat analysts' top-line expectations.

The Hopkinton, Mass.-based data storage company posted a profit of $268.8 million, or 13 cents a share, in the quarter, which fell from $312.6 million, or 15 cents a share, in the same quarter a year earlier. Excluding items related to acquisitions and employee stock options, EMC said it earned 23 cents in the quarter.

Although adjusted earnings fell short of the Thomson Financial average estimate of 25 cents a share, quarterly revenue of $3.47 billion increased 17% and topped analysts' expectations of $3.45 billion, easing fears that sales would be hampered by an economic slowdown.

Shares of EMC were rising 3.8% to $16.18. Elsewhere in the sector,

Hewlett-Packard

(HPQ) - Get Report

and

IBM

(IBM) - Get Report

were fractionally lower, while

NetApp

(NTAP) - Get Report

ticked ahead.

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EMC reported earnings a day after

VMware

(VMW) - Get Report

, a virtualization software developer in which EMC holds a major stake. Late Tuesday, VMware

said first-quarter revenue

outstripped Wall Street's expectations, but the company's second-quarter forecast came up short.

Shares of VMware were surging 10.5% to $64.13.

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