Will These Numbers from EMC Be Good Enough for You?

EMC (NYSE: EMC  ) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict EMC's revenues will grow 6.5% and EPS will grow 8.1%.

The average estimate for revenue is $5.42 billion. On the bottom line, the average EPS estimate is $0.40.

Revenue details
Last quarter, EMC recorded revenue of $6.03 billion. GAAP reported sales were 8.2% higher than the prior-year quarter's $5.57 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.54. GAAP EPS of $0.39 for Q4 were 2.6% higher than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 64.1%, 90 basis points better than the prior-year quarter. Operating margin was 21.1%, 20 basis points better than the prior-year quarter. Net margin was 14.4%, 50 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $23.47 billion. The average EPS estimate is $1.86.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,719 members out of 3,856 rating the stock outperform, and 137 members rating it underperform. Among 689 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 672 give EMC a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EMC is outperform, with an average price target of $30.28.

Is EMC the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of EMC. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2375539, ~/Articles/ArticleHandler.aspx, 10/31/2014 5:00:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,390.52 195.10 1.13%
S&P 500 2,018.05 23.40 1.17%
NASD 4,630.74 64.60 1.41%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/31/2014 4:02 PM
EMC $28.73 Up +0.27 +0.95%
EMC Corp CAPS Rating: *****

Advertisement