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.
Is EMC the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add EMC to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of EMC. 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.