(By Balaseshan) EMC (NYSE:EMC) reported higher quarterly earnings driven by 10% upside in top line. The data storage company maintained its 2012 outlook that was below Street's view, sending its shares down 3.02% in premarket.
Profit increased 19% to $650 million for the second quarter, while earnings per share (EPS) grew 21% to $0.29. Adjusted profit was $866.68 million or $0.391 a share, up from $793.17 million or $0.348 a share in the year-ago quarter.
Revenues grew 10% to $5.31 billion. Street analysts' were expecting the company to report earnings of $0.39 a share and revenue of $5.29 billion.
EMC's results were benefited on continued customer demand for the company's Isilon scale-out NAS portfolio, VNX unified storage family, Backup Recovery Systems (BRS) portfolio, and VMAX systems family.
On a year-on-year basis, adjusted gross margin improved to 64.4% from 62.2%. Similarly, adjusted operating margin improved to 24% from 23.1% thereby contributing to its profitability.
Going forward, EMC is still looking to achieve adjusted earnings per share of over $1.70 and GAAP earnings of over $1.25 a share in 2012. Consolidated revenues are still expected to be $22.0 billion for 2012. Wall Street analysts' are estimating the company to deliver earnings of $1.73 share on revenue of $22.07 billion.
EMC expects to repurchase $700 million of its common stock in 2012. The company remains on track to deliver its 'triple play' -- simultaneously taking market share, reinvesting for growth and delivering improved earnings -- and is well positioned for its next major phase of growth.
EMC ended Monday's regular session down 1.00% at $24.80. The stock has been trading between $19.84 and $30 for the past 52 weeks.