EMC Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

EMC (NYS: EMC) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), EMC met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.


Margins improved across the board.

Revenue details
EMC booked revenue of $5.31 billion. The 33 analysts polled by S&P Capital IQ expected to see a top line of $5.30 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $4.85 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.39. The 33 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.29 for Q2 were 21% higher than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.0%, 220 basis points better than the prior-year quarter. Operating margin was 18.4%, 120 basis points better than the prior-year quarter. Net margin was 12.2%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.50 billion. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $22.06 billion. The average EPS estimate is $1.72.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,660 members out of 3,791 rating the stock outperform, and 131 members rating it underperform. Among 719 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 701 give EMC a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EMC is buy, with an average price target of $32.95.

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The article EMC Hits Estimates in Solid Quarter originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of EMC. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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