Piper Jaffray Expects $20B in FY11 for EMC Corporation

Piper Jaffray estimates EMC Corporation

will guide $22B for FY12 based on an expected report of modest upside to Q4 estimates and approximately $20B in annual revenue for FY11. In the report, Piper Jaffray commented that, “EMC has historically provided annual guidance during the Q4 earnings call. After extracting the VMware guidance, we note that EMC has consistently exceeded the implied guidance for the core storage business. Looking ahead to FY12, we believe management will likely guide to revenue of $22B, which equates to 8% y/y growth. However, we expect management to suggest that growth may be below normal in 1H12 due to the HDD shortage, while 2H12 will likely be better than normal.” Piper Jaffray maintains its Overweight rating and $33.00 PT on EMC, which closed Friday at $22.25.