The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EMC met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins grew, operating margins grew, net margins dropped.
EMC recorded revenue of $6.03 billion. The 34 analysts polled by S&P Capital IQ predicted net sales of $5.97 billion on the same basis. 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 came in at $0.54. The 37 earnings estimates compiled by S&P Capital IQ forecast $0.52 per share. 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.
For the quarter, gross margin was 64.5%, 130 basis points better than the prior-year quarter. Operating margin was 21.5%, 60 basis points better than the prior-year quarter. Net margin was 14.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.49 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $23.58 billion. The average EPS estimate is $1.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,688 members out of 3,822 rating the stock outperform, and 134 members rating it underperform. Among 757 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 741 give EMC a green thumbs-up, and 16 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.
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