On Jan. 24, EMC
- Per-share earnings of $0.06 included more than $260 million in special charges relating to tax matters and workforce changes. Without them, EMC booked $0.17 per stub in 2005, equal to Street expectations.
- Neither figure, however, included options expensing, which dragged down earnings by an additional $0.03 per stub in Q4.
- Kudos to Foolish colleague Rich Smith for forecasting that inventory would be a huge issue for EMC in Q4. It was. In fact, it marks the second consecutive quarter that the company grew its stockpile twice as fast as sales year over year. Uh-oh.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2005 |
Q4 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$2,690,000 |
$2,710,267 |
$2,357,796 |
+14.9% |
|
Net Profit |
-- |
$148,295 |
$320,545 |
-53.7% |
|
EPS |
$0.17 |
$0.06 |
$0.13 |
-53.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2005 |
Q4 2004 |
Change |
|
|---|---|---|---|
|
Gross Margin |
54.77% |
52.41% |
+2.35% |
|
Op. Margin |
15.52% |
15.45% |
+0.08% |
|
Net Margin |
5.47% |
13.60% |
-8.12% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2005 |
FY 2004 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$3,937,865 |
$2,713,529 |
+45.1% |
|
Inventory |
$724,751 |
$514,065 |
+41.0% |
|
Accounts Rec. |
$1,405,564 |
$1,162,387 |
+20.9% |
|
Liabilities |
|||
|---|---|---|---|
|
Long-Term Debt |
$126,963 |
$128,456 |
-1.2% |
|
Accounts Pay. |
$583,756 |
$522,770 |
+11.7% |
Cash Flow Highlights
|
FY 2005 |
FY 2004 |
% Change |
|
|---|---|---|---|
|
Cash From Ops |
$2,216,296 |
$2,102,295 |
+5.4% |
|
Capital Expend.* |
$1,284,808 |
$961.859 |
+33.6% |
|
Free Cash Flow |
$931,488 |
$1,140,436 |
-18.3% |
Find out why Fools always follow the money.
Related companies:
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For related Foolishness:
- Was our Foolish Forecast far off? Not likely.
- Get last quarter's numbers, too.
- Keep it slow and steady, EMC.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
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Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile . The Motley Fool has an ironclad disclosure policy .
