The Gory Details on EMC's Double Miss
EMC (NYS: EMC) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EMC missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins grew, operating margins contracted, net margins contracted.
EMC tallied revenue of $5.28 billion. The 35 analysts polled by S&P Capital IQ hoped for sales of $5.47 billion on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $4.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 38 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.28 for Q3 were 3.7% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.3%, 70 basis points better than the prior-year quarter. Operating margin was 17.5%, 70 basis points worse than the prior-year quarter. Net margin was 11.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.98 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $21.67 billion. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,680 members out of 3,812 rating the stock outperform, and 132 members rating it underperform. Among 720 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 704 give EMC a green thumbs-up, and 16 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 $31.45.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is EMC on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add EMC to My Watchlist.
The article The Gory Details on EMC's Double Miss originally appeared on Fool.com.Seth Jayson had 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.