EMC Corporation Shares Rise on Strong Q2 Sales

Storage specialist EMC beat Wall Street's revenue projections in the second quarter, driven by several high-growth product lines.

Jul 23, 2014 at 10:25AM
Emc Vnx

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!

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends Apple and VMware. The Motley Fool owns shares of Apple, EMC, and VMware. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers