Citigroup Expects Above-Consensus EMC 4Q

“Given the strength in VMware (NYSE: VMW) results, we expect EMC Corporation (NYSE: EMC) revenue and non-GAAP EPS to come in modestly above our/consensus estimates of $4.78B/$4.79B and our in-line EPS estimate of $0.41,” Citigroup wrote in a report this morning.

“VMware's beat-and-raise quarter implies $25M revenue upside, EPS neutral to our 4Q estimates for consolidated EMC. We believe EMC was a beneficiary of the 4Q Enterprise IT spending budget flush, which VMware highlighted on their call, however difficult seasonality heading into 1Q, the potential for a 1Q mid-range pause with the new VNX offerings, and mgmt conservatism will likely drive an outlook that is in-line to slightly above consensus estimates.”

EMC Corporation closed Monday at $23.83.