EMC Corporation Earns $0.37 a Share as Operating Margins Jump

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EMC Corporation Earns $0.37 a Share as Operating Margins Jump

IT infrastructure development company EMC Corporation (NYSE: EMC) is tipped to release its earnings figures for the first fiscal quarter 2012 on the morning of Thursday 19th April.

The Zacks Consensus Estimate gives an ESP for this quarter of $0.29.  This is great news for the IT giant’s investors, and amounts to a 20.8% increase from last year’s first quarter earnings of around 24 cents. The numbers just came out;

EMC reported a profit of $586.8 million, or 27 cents a share, up from $477.1 million, or 21 cents, a year earlier. Excluding items such as stock-based compensation, amortization, restructuring and acquisition charges, earnings rose to 37 cents from 31 cents. Revenue jumped 11% to $5.09 billion.

Operating margins rose to 16.7% , up 210 basis points!


During fiscal 2012 analysts predict EMC’s earnings to be $1.43 per share.  Predictions of revenue for this quarter stand at $5.12 billion and have been upgraded by 11% over the past three months.

Total revenue for fiscal 2012 is predicted to be in excess of $22 billion.

EMC has boasted consistent double figure increases in revenue for each of the past four quarters. The last three quarters showed an overall 34.2% increase in profits There are no signs that this is set to stop now and market observers are expecting great things from this morning’s earnings release.

Analyst Ratings

The overwhelming analyst opinion (85%) is to strong buy.  Of 29 analysts, a whopping 21 held this opinion.  Only one urged a more cautious buy and three outsiders suggested hold.

Competitive firms

EMC has a number of strong competitors in the field of virtual infrastructure technologies; among them NetApp (NTAP), Dot Hill Systems (HILL), and Western Digital (WDC).  EMC’s principal competitor, IBM (IBM), reported first quarter earnings on April 17th 2012.

Recent Price Movements

EMC has ridden high on the markets this past quarter, finishing trading on Wednesday 18th April with a stock price of $28.87.  In the three months since 18th January 2012 EMC’s stock price has grown from $22.22, a healthy increase of $6.65. Further positive movement is predicted for this coming quarter.


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