EMC Posts Downbeat Q1 Results, Lowers Forecast

Loading...
Loading...
EMC Corporation
EMC
reported weaker-than-expected results for the first quarter and lowered its full-year guidance. For the full year, EMC now projects adjusted earnings of $1.91 per share on revenue of $25.7 billion. The company in January had expected earnings of $1.98 per share on revenue of $26.1 billion. The Hopkinton, Massachusetts-based company reported quarterly net income of $252 million, or $0.13 per share, compared to $392 million, or $0.19 per share, in the year-ago period. On an adjusted basis, EMC's earnings slipped to $0.31 per share from $0.35 per share. Its revenue gained 2 percent to $5.6 billion, while revenue on a constant currency basis climbed 6 percent. However, analysts were estimating a profit of $0.36 per share on revenue of $5.74 billion. Sales in its core information storage business slipped 1 percent in the quarter. EMC's consolidated revenue from North America gained 5 percent year over year, while revenue from Europe, Middle East and Africa region declined 2 percent. The company ended the quarter with $13.5 billion in cash and investments. During the quarter, EMC repurchased around $1.5 billion worth of its common stock. The average estimate among 21 Estimize users was for earnings of $0.36 per share and revenue of $5.76 billion. Zane Rowe, EMC CFO, said, "Our financial results were broadly in line with our expectations for the quarter and previously disclosed outlook for the year, thanks to the hard work of the entire EMC team. By realigning our organization and optimizing our investments, we were able to drive further cost efficiencies in the quarter. We are well positioned for the remainder of 2015 with a strong portfolio, tremendous potential in our six key growth opportunities, and increasing strategic relevance with customers. We will continue to aggressively look for opportunities to grow the revenue line, become more efficient and increase shareholder value." EMC shares rose 0.68 percent to $26.50 in pre-market trading.
Loading...
Loading...
Posted In: EarningsNewsGuidanceprofit
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...