Overall, earnings are expected to be in line with last year's quarter while revenue is expected to grow year-over-year.
Analysts are projecting the computer data storage company to earn 44 cents a share on revenue of $6.17 billion.
In the same quarter the year before, the company earned 44 cents a share on revenue of $6.03 billion.
Earlier this month, the company announced that it would be acquired by Dell for about $67 billion.
Some headwinds for the latest quarter include growing competition in storage and cloud computing, and weak IT spending and pricing pressure, according to Zacks Equity Research.
Hopkinton, MA-based EMC shares are declining 0.25% to $27.65 on Tuesday.
Separately, TheStreet Ratings team rates EMC CORP/MA as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate EMC CORP/MA (EMC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth significantly trails the industry average of 37.3%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.89 is weak.
- Net operating cash flow has decreased to $1,033.00 million or 17.62% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Computers & Peripherals industry average, but is greater than that of the S&P 500. The net income has decreased by 17.2% when compared to the same quarter one year ago, dropping from $588.00 million to $487.00 million.
- You can view the full analysis from the report here: EMC