Rodman & Renshaw Comments on EMC's 3Q EPS/Revenue Beat

Rodman & Renshaw has published a research report on EMC Corporation EMC after the company reported 3Q revenues up 18% y/y. In the report, Rodman & Renshaw writes, "EMC Corp (EMC, Market Outperform) reported 3Q11 revenues of $4.98 billion, up 18% Y/Y and 3% Q/Q, beating both consensus and our estimates of $4.90 /$4.60 billion. Adjusted EPS came in at $0.37, above our expectation of $0.34 and in line with street estimates of $0.37. Revenues from VMware (VMW, Not Rated) were up 32.2% Y/Y. Gross margins expanded 70 bps to 63.0% due to better product mix. Operating margins increased to 24.0% compared to 23.1% last quarter. Cash and cash equivalents were at $9.26 billion ($4.51 per share)." Rodman & Renshaw maintains its Market Outperform rating and $27 price target on EMC, which is currently trading up $1.23 from yesterday's $22.68 closing price.