On Oct. 19, EMC (NYSE:EMC) released earnings for its 2005 third quarter, which ended Sept. 30.

  • 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)

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Q3 2004

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Related companies:

  • Dell (NASDAQ:DELL)
  • Hewlett-Packard (NYSE:HPQ)
  • Hitachi (NYSE:HIT)
  • Network Appliance (NASDAQ:NTAP)
  • Sun Microsystems (NASDAQ:SUNW)

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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.