EMC Shares Fall on Earnings Miss
EMC Corp. (NYSE: EMC) this morning posted third-quarter results that missed on the top and bottom lines, and it lowered its full-year outlook.
The world's biggest maker of corporate data-storage equipment posted adjusted earnings per share (EPS) of $0.40 on revenues of $5.28 billion. In the same period a year ago, the company reported EPS of $0.37 on revenues of $4.98 billion. The quarter's results also compare to the Thomson Reuters consensus estimates for EPS of $0.42 and $5.46 billion in revenues.
Operating cash flow was up 12% year over year to $1.44 billion. Free cash flow rose 16% to $1.14 billion.
The Hopkinton, Mass.-based tech company's president and COO said:
For the third quarter, EMC's business continued to grow faster than overall IT spending growth and we gained market share in what turned out to be a more cautionary environment than we expected heading into the quarter. We remain extremely confident in our strategy, best-of-breed product portfolio and solid operational and financial model.
EMC now expects full-year 2012 EPS to be in the range of $1.68 and $1.70 on revenue of between $21.60 billion and $21.75 billion. The Thomson Reuters consensus estimates call for EPS of $1.74 and $22.24 billion in revenues.
Shares are down about 3% in premarket trading to $23.97. The 52-week range is $21.25 to $30.00. The mean price target before this report was $31.74.
Filed under: 24/7 Wall St. Wire, Earnings, Technology Companies Tagged: EMC