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EMC (EMC) Cuts Revenue Outlook, 3Q Lags Estimates

 October 24, 2012 07:25 AM
 

(By Balachander) EMC Corp. (NYSE: EMC) reduced its revenue outlook for the full year after the provider of enterprise storage systems and software reported lower-than-expected quarterly results.

Non-GAAP earnings per share (EPS) for the third quarter increased 8 percent to 40 cents, yet trailed market expectations of 42 cents.

GAAP earnings attributable to EMC grew 3 percent to $626 million. 

Revenue rose 6 percent to $5.28 billion, but came in short of Wall Street projections of a growth of 9.70 percent.

"For the third quarter, EMC's business continued to grow faster than overall IT spending growth and we gained market share in what turned out to be a more cautionary environment than we expected heading into the quarter," commented EMC Chief Operating Officer David Goulden.

The Hopkinton, Massachusetts-based company said its networked storage platforms portfolio rose 2 percent. Revenue at the company's high-end Symmetrix storage product portfolio rose 5 percent. EMC's revenue from portfolio of mid-tier storage products was flat.

Looking ahead for the full year, the company now expects EPS in the range of $1.68 to $1.70 from prior expectations of $1.70. Revenue is now projected to be between $21.60 billion and $21.75 billion from $22.0 billion projected earlier. Analysts expect EPS of $1.72 on revenue of $22.03 billion.

The stock, which has been trading in the 52-week range of $21.25 to $30.00, ended at $24.68 on Tuesday.


Rich
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