EMC Sees 14% Sales Growth in 2006

It also backs 2005 earnings guidance of 50 cents or 51 cents a share.
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EMC

(EMC)

will continue its aggressive share buyback this year, and expects revenue in 2006 to grow by a brisk 14%, the storage giant told investors Thursday.

The company also reaffirmed its guidance for 2005, saying it expects to earn 50 cents or 51 cents a share on sales of $9.6 billion. Last year, EMC posted a profit of 36 cents a share on sales of $8.23 billion.

Speaking at the company's analyst day in New York, CFO Bill Teuber said EMC repurchased 11.2 million shares for $157 million since July 21, after buying back 20.8 million shares worth about $271 million in the first half of the year.

Teuber also said that the company remains focused on pushing margins to 20% or better by later in 2006, up from the high-teens estimate the company is projecting for late 2005.

EMC's target of $11 billion in revenue for 2006 is about 2% higher than the $10.87 billion analysts were projecting.

In recent trading during a generally down day on Wall Street, shares were off 9 cents to $13.81 a share.