On Oct. 19, EMC
- Sales of $2.37 billion were in line with Street estimates. EPS, however, appeared to blow away analyst projections. Yet that's deceiving because net income included a $0.04 per-stub tax benefit. Still, it's worth noting that even without the benefit, EMC beat estimates by a penny. Pretty much like last quarter.
- Though year-over-year revenue growth has begun to slow, margins have continued to expand generously. That may be due to a 25% increase in professional services revenue, which tends to carry a healthy markup. It's a good sign regardless.
- The earnings impact of options continued to wane. Expensing options would have cut EPS by $0.03 during Q3, down from $0.04 during the same period a year ago.
(Figures in thousands, except per-share data)
Income Statement Highlights (What's this?)
|
Avg. Est. |
Q3 2005 |
Q3 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$2,370,000 |
$2,365,742 |
$2,028,879 |
+16.6% |
|
Net Profit |
-- |
$421,672 |
$218,035 |
+93.4% |
|
EPS |
$0.12 |
$0.17 |
$0.09 |
+88.9% |
Margin Checkup (What's this?)
|
Q3 2005 |
Q3 2004 |
Change |
|
|---|---|---|---|
|
Gross Margin |
54.00% |
51.42% |
+2.59% |
|
Op. Margin |
15.89% |
13.31% |
+2.58% |
|
Net Margin |
17.82% |
10.75% |
+7.08% |
Balance Sheet Highlights (What's this?)
|
Assets |
Q3 2005 |
Q3 2004 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$4,464,753 |
$2,450,714 |
+82.2% |
|
Inventory |
$756,245 |
$547,028 |
+38.2% |
|
Accounts Rec. |
$1,166,175 |
$950,216 |
+22.7% |
|
Liabilities |
|||
|---|---|---|---|
|
Long-Term Debt |
$127,335 |
$128,832 |
-1.2% |
|
Accounts Pay. |
$517,523 |
$448,427 |
+15.4% |
Cash Flow Highlights (What's this?)
|
Q3 2005 |
Q3 2004 |
% Change |
|
|---|---|---|---|
|
Cash From Ops |
$1,619,249 |
$1,453,209 |
+11.4% |
|
Capital Expend. |
$540,170 |
$386,426 |
+39.8% |
|
Free Cash Flow |
$1,079,079 |
$1,066,783 |
+1.2% |
Related companies:
-
Dell
(NASDAQ:DELL) -
Hewlett-Packard
(NYSE:HPQ) -
Hitachi
(NYSE:HIT) -
IBM
(NYSE:IBM) -
Network Appliance
(NASDAQ:NTAP) -
Sun Microsystems
(NASDAQ:SUNW)
For related Foolishness:
- Does the so-called "IT recovery" actually compute?
- It may sound Dilbertian, but EMC is all about synergy.
- Sun's deal with StorageTek may yet prove to be meaningless.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Dell is a Motley Fool Stock Advisor recommendation.
The Motley Fool has kicked off its ninth annual Foolanthropy campaign! Nominate your favorite charities on our Foolanthropy discussion board through Nov. 1. For guidelines on what makes a charity Foolish, visit www.foolanthropy.com .
Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.
