EMC Corporation Reports Strong Results and Soft Guidance; Investors Shrug and Move On
Data storage specialist EMC just reported fourth-quarter results, showing strong results but a weak outlook.
EMC's sales increased 11% year over year to $6.7 billion. Non-GAAP earnings also jumped 11% higher, landing at $0.60 per diluted share. Analysts were looking for adjusted earnings of $0.59 per share on $6.6 billion in revenue.
Looking ahead, EMC expects sales of $24.5 billion for the 2014 fiscal year, including $5.4 billion in the first quarter. Analysts were hoping for $25 billion and $5.8 billion, respectively. Earnings projections also came in below current Street views.
EMC shares fell as much as 1.5% in Tuesday evening's after-hours trading, weighed down by an uninspiring report from majority-owned virtual computing expert VMware . Vmware's shares continued to trade lower in Wednesday's regular session, but EMC shares bounced back to match Tuesday's closing price.
CEO Joe Tucci reminded investors that EMC is betting big on the game-changing mega trends of mobile, social, and Big Data. These platforms are making "a profound impact on business and transforming the way we work and live," Tucci said. "Customers and partners have these transformations in their sights and are embracing EMC's vision, strategy and best-of-breed portfolio to capitalize on them."
The article EMC Corporation Reports Strong Results and Soft Guidance; Investors Shrug and Move On originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends and owns shares of VMware. It also 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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