EMC Earnings: Higher-Than-Expected Net Income

EMC's (NYSE: EMC) net income topped Wall Street expectations in the second 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:
Wall Street watched as EMC topped expectations with its latest EPS and revenue figures. The company reported EPS of adjusted net income of 35 cents/share versus the 27 cents/share estimate and revenues of $4.85 billion versus the $4.73 billion estimate.

This quarter marks the third in a row of rising net income. EMC has also enjoyed double-digit year-over-year revenue growth for the past five quarters. During that time, the company has averaged growth of 20.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 23.5% from the year earlier quarter.

Income:
For the year, EMC reported net income of 96 cents per share. The company fells short of analysts projections of $1.08. According to the reported number, the company's income rose 28.2% from last year's levels.

Conference Call:
The conference call for second quarter earnings can be accessed here.

Official Comment:
Joe Tucci, EMC Chairman and Chief Executive Officer, said, "Our record-setting performance during the quarter was marked by balanced growth, solid execution and significant technology innovation as customers around the world continue to embrace EMC's cloud computing and Big Data strategies. It is our firm belief that this strategy is well-placed and underpinned with winning products and services and strategic partners. We remain confident in our ability to continue delivering strong results this year and over the long term. Furthermore, we remain committed to investing heavily to extend our technology lead and help customers and service provider partners accelerate their IT and business model transformations."

Industry:
With price/earnings growth of 1.4%, EMC's industry, computer-storage development, is expanding. The company's EPS lags behind the industry average by 77%.

What to Do Next:
Now you can make a better-informed decision about whether to buy, sell or hold EMC shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.

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