The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EMC missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins grew, operating margins contracted, net margins contracted.
EMC tallied revenue of $5.28 billion. The 35 analysts polled by S&P Capital IQ hoped for sales of $5.47 billion on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $4.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 38 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.28 for Q3 were 3.7% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.3%, 70 basis points better than the prior-year quarter. Operating margin was 17.5%, 70 basis points worse than the prior-year quarter. Net margin was 11.9%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.98 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $21.67 billion. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,680 members out of 3,812 rating the stock outperform, and 132 members rating it underperform. Among 720 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 704 give EMC a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EMC is buy, with an average price target of $31.45.
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