EMC Meets Estimates, Reaffirms Guidance

NEW YORK ( TheStreet) -- EMC ( EMC) shrugged off a cautious IT spending environment to meet Wall Street's second-quarter estimates and also reaffirmed its full-year guidance.

The storage giant reported revenue of $5.6 billion before market open, a 6% hike on the same period last year and a second-quarter record. Analysts surveyed by Yahoo! Finance had predicted sales of $5.6 billion.

Excluding items, EMC earned 42 cents a share, an 8% increase on the prior year's quarter and in line with consensus estimates.

For the full year, EMC expects sales of $23.5 billion and earnings, excluding items, of $1.85 a share. Analysts are looking for sales of $23.41 billion and earnings of $1.86 a share.

Investors responded positively to the numbers, pushing EMC's shares up 4.86% to $26.56 before market open.

Revenue from EMC's Information Infrastructure business increased 4% year over year, while sales from its Information Storage division also grew 4%. The firm's RSA Information Security operation grew 3%, while EMC's VMware ( VMW) virtualization subsidiary enjoyed double-digit year-over-year revenue growth.

"The strength and demand we saw during the quarter, despite a cautious IT spending environment, speaks to the soundness of our strategy, the value customers see in our federated business model, and the massive opportunity ahead in cloud computing, Big Data and trusted IT," said EMC CEO Joe Tucci, in a statement released before market open.

Earlier this week chip maker Texas Instruments ( TXN) noted a slightly improved economic climate when it reported its third-quarter results.

--Written by James Rogers in New York.

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