July 18, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of storage specialist EMC (NYSE: EMC ) are emerging victorious today, enjoying gains as high as 11% after the company announced preliminary earnings last night and some management changes.
So what: Revenue in the second quarter will be right around a record $5.3 billion, a 10% increase. Adjusted earnings per share are also at record levels and should be approximately $0.39 per share. EMC also reaffirmed its full-year goals, expecting sales of $22 billion and adjusted earnings of $1.70 per share.
Now what: EMC's majority owned subsidiary, VMware (NYSE: VMW ) is kissing its CEO, Paul Maritz, farewell, who will become EMC's chief strategist and will report directly to EMC CEO Joe Tucci. Maritz will be leading EMC's focus on big data and the next generation of cloud-oriented applications. The companies are trading execs, with EMC exec Pat Gelsinger becoming VMware's new CEO. EMC's confidence in its full-year forecast is helping boost tech stocks today, as the sector had been plagued by macro concerns on IT spending.
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