With a rise in net income, EMC (NYSE: EMC) beat Wall Street forecasts in the third quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.
Earnings and Revenue:
Investors cheered EMC's latest numbers as the company announced EPS and revenues that topped predictions. The company reported adjusted net income of 37 cents/share versus the 30 cents/share estimate and revenues of $4.98 billion versus the $4.92 billion estimate. Revenue climbed 18.2% from the same period last year.
Last quarter marked the third in a row of rising net income. EMC has averaged revenue growth of 19.2% over the past five quarters.
Income:
For the year, EMC reported net income of $1.26/share. The company trumped analyst projections of $1.19 by 5.9%. According to the reported number, the company's income rose 28.2% from last year's levels.
Conference Call:
The conference call for third quarter earnings can be accessed here.
Official Comment:
Joe Tucci, EMC Chairman and Chief Executive Officer, said, "I am very pleased with EMC's execution and solid third-quarter financial performance. Global customer demand for our industry-leading products and services, which led to record quarterly financial results, is clear evidence that EMC is at the center of the most transformative, disruptive and opportunity-rich trends in IT history - namely hybrid cloud computing and the explosion of Big Data. With the strategy, products and momentum in our favor, EMC remains extremely well positioned to help customers accelerate their journey to the cloud, discover the value of Big Data and transform IT into a source of greater efficiency, agility and control."
Industry:
EMC's industry, computer-storage development, is currently reporting price/earnings growth of 0.1%. The company's EPS lags behind the industry average by 69.4%.
What to Do Next:
Now you're all set to decide what to do with those EMC shares until the next earnings announcement. Whether you buy, sell, or hold, check back with us before the company's next earnings release for a full preview.
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