EMC Corporation (NYSE:EMC) released its earnings report for the three months ended September 30 this morning before the market opened on Wall Street. The information technology company showed earnings of 40 cents on revenue totaling $5.5 billion. Shares in EMC were slumping in pre-market trading this morning after the release of the earnings figure.
In the run up to the release of this report analysts following EMC Corporation (NYSE:EMC) were looking for earnings per share of 45 cents on revenue of $5.8 billion from the company. In the same three months of last year the company managed to earn 40 cents per share on $5.3 billion. This morning’s miss sets the company back as the information technology sector looks clouded.
EMC Corporation (NYSE:EMC) is not the firs IT company to miss on earnings this time around. The IBM earnings report showed the company missing out in China in a big way, and materially hit the firm’s bottom line. EMC’s business was hit closer to home.
The miss on earning was attributed to a lull in US Federal spending. EMC Corporation (NYSE:EMC) Said that storage demand accelerated in every market bar the US Federal government . The firm said it expects to continue growth despite today’s setback.
In the year so far shares in EMC Corporation (NYSE:EMC) have been almost entirely flat. The comapny is highly valued, but it is operating in an extremely competitive industry. Results like today’s are not a positive for the firm’s stock, but the market reaction doesn’t appear to have been totally negative.
At time of writing shares in EMC Corporation (NYSE:EMC) were trading a little less than 2% below yesterday’s close. The firm’s executives will host a conference call at 9:30 AM EDT in order to discuss this morning’s results. Investors will want to know whether the loss in US Federal spending is likely to hit fourth quarter results hard.