EMC Corporation Shares Rise on Strong Q2 Sales

Source: EMC.

Data storage specialist EMC (NYSE: EMC  ) this morning reported results for the second quarter of 2014. In early morning trading, shares briefly rose as much as 3.7% on the news. As of 10:20 a.m., shares were up nearly 1%.

EMC saw sales rise 5% year-over-year, landing at $5.9 billion. Adjusted earnings edged up from $0.42 to $0.43 per share. The revenue figure was slightly above analyst expectations of $5.8 billion, and earnings were in line with Street projections.

The company's core information storage operations saw revenues increase 1% year-over-year, or 7% excluding high-end storage products. Virtual computing subsidiary VMware (NYSE: VMW  ) recorded 17% sales growth, cloud platform Pivotal grew by 29%, and emerging storage sales increased by 52%. [VMware reported its second-quarter results Tuesday.]

Looking ahead, EMC sees full-year sales stopping at $24.6 billion while non-GAAP earnings should arrive at $1.91 per share. These projections were unchanged from guidance given in the first-quarter report.

"Our industry and customers are in the midst of a massively disruptive and transformational shift, and the pace of change is accelerating," said EMC CEO Joe Tucci in a prepared statement. "EMC detected it early on, put the right strategy in place and is executing well. New customers are coming to EMC for the first time, and existing customers are investing more heavily, because of our expanded capabilities across EMC Information Infrastructure, VMware and Pivotal."

The press release did not address the recent actions of activist investment firm Elliott Management, which built a $1 billion stake in EMC and hopes to spin VMware off as a separate entity. EMC shares jumped more than 5% overnight when Elliott's breakup plan was disclosed.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (3)

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: 3040536, ~/Articles/ArticleHandler.aspx, 11/28/2014 5:13:14 AM

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...


Advertisement