EMC Corporation (NYSE:EMC) reported its latest quarterly earnings before opening bell this morning, posting record second quarter consolidated revenue, net income and earnings per share. Revenue was $5.6 billion, a 6 percent increase from the same quarter a year ago. GAAP earnings per diluted share rose 10 percent from last year to 32 cents per share. Excluding items, earnings per diluted share were 42 cents.
Shares of EMC Corporation (NYSE:EMC) rose as much as 4 percent in pre-market trading after the news was announced. Analysts had been expecting the company to report earnings of 42 cents per share on $5.6 billion in revenue.
In his book, The Dhandho Investor: The Low–Risk Value Method to High Returns, Mohnish Pabrai coined an investment approach known as "Heads I win; Tails I don't lose much." Q3 2021 hedge fund letters, conferences and more The principle behind this approach was relatively simple. Pabrai explained that he was only looking for securities with Read More
EMC reports strong growth in its businesses
EMC also reported year over year revenue growth across all three of its federated businesses and reaffirmed its full-year guidance. EMC’s Information Infrastructure revenue rose 4 percent year over year. Information Storage saw its revenue increase 4 percent as well.
Within Information Storage, EMC Corporation (NYSE:EMC)’s Emerging Storage business posted a 39 percent year over year increase in revenue. Under the same division, its High-end Storage business saw continued revenue growth and market share gains, while its Unified and Backup Recovery business also increased its revenue.
EMC’s RSA Information Security business saw its revenue climb 3 percent year over year, while its Information Intelligence business made progress in its transition to greater cloud offerings and vertical solutions.
EMC joins with VMware
EMC Corporation (NYSE:EMC) reported that demand for its Vblock systems showed strong year over year growth. VMware, Inc. (NYSE:VMW) reported double digit revenue growth year over year. Shares of VMware were still climbing in pre-market trading on Wednesday, gaining as much as 14 percent after EMC’s results were announced. VMware and EMC joined together to form a new company during the second quarter. Pivotal brings programs from the two companies together, and a strategic investment in the new company was made by General Electric Company (NYSE:GE).
EMC provides guidance for 2013
For the full year, EMC Corporation (NYSE:EMC) expects revenue to be $23.5 billion. GAAP operating income is projected to be 18.5 percent of the company’s revenues, while consolidated non-GAAP operating income is projected to be 25.5 percent. GAAP earnings per share are expected to be $1.37 per share, while earnings excluding items are projected to be $1.85 per share.
The company said it plans to buy back $3.5 billion worth of its common shares this year and in the first half of next year.