EMC Tops Estimates, Sees Shares Surge
HOPKINTON, Mass. (
) --
EMC
(EMC)
comfortably topped analysts' estimates in its first-quarter results, boosted by demand for high-end storage and data backup products.
The storage maker also raised its guidance for fiscal 2010, providing yet further evidence that the
is
gathering pace
.
EMC reported revenue of $3.9 billion before market open on Wednesday, a 23% increase on the prior year's quarter, and well above analysts' estimate of $3.71 billion.
Excluding items, EMC earned 26 cents a share, a massive 63% hike on the same period last year. Analysts surveyed by Thomson Financial had forecast earnings of 24 cents a share.
Investors responded positively to EMC's numbers. The company's stock shot up 39 cents, or 2.01%, to $19.80 in pre-market trading.
EMC
, which competes with
TheStreet Recommends
NetApp
(NTAP) - Get NetApp, Inc. Report
, enjoyed double-digit revenue growth in its high-end
products and saw its Data Domain and Avamar backup and recovery businesses grow more than 100% compared to the prior year.
EMC also gave bullish guidance, predicting 2010 revenue of $16.5 billion, up from its prior estimate of $16 billion. Excluding items, EMC now expects earnings of $1.18 a share this fiscal year, compared to its prior estimate of $1.12.
Analysts surveyed by Thomson Financial had forecast revenue of $16.04 billion and earnings of $1.14 for fiscal 2010.
The storage giant's numbers will be seen as further evidence that enterprises are reopening their corporate coffers after weathering the recession.
"During the first quarter, we saw customers move forward with increased confidence, focusing not only on cost cutting initiatives, but beginning new innovative projects in their traditional and virtual data center infrastructures," said EMC CFO David Goulden, in a statement.
Earlier this week,
VMware
(VMW) - Get VMware, Inc. Class A Report
, which is majority-owned by EMC, also
blew past analysts' estimates
, and tech bellwether
IBM
(IBM) - Get International Business Machines Corporation Report
-- Reported by James Rogers in New York
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