EMC (EMC) reported first quarter earnings that fell short of analysts' projections, but shares haven't relinquished any ground in Wednesday's trading session, as investors continue to focus on the storage company's impending acquisition by Dell.
In fact, EMC shares were trading 3% higher at $26 a share in the afternoon, as investors continue to show a constructive stance toward the stock. EMC management said the takeover by Dell is still on track to be completed sometime in the second or third quarter of this year.
EMC reported 31 cents a share for the period, 2 cents below Wall Street's projections, and matching the company's year-earlier performance. The company declined to provide forecasts for its coming performance.
EMC also has gotten a boost from the performance of VMWare (VMW) , the virtualization software maker that's 81% owned by EMC, an enterprise that is slated to be recapitalized by the Dell transaction. VMWare late Tuesday reported a better-than-expected rise in quarterly revenue for the quarter ended in March and said that its sales in the current quarter would match or exceed analysts' forecasts, helped by sales of a new virtualization software product.
VMWare also announced plans to repurchase $1.2 billion worth of shares, a move that would shrink its share count and make its stock more valuable.
VMWare shares, which have retreated as much as 35% since the Dell deal for EMC was announced, climbed 14% Wednesday to $58.
Analysts following EMC said the outlook for completion of the takeover by Dell was more important than the storage company's quarterly profit performance.