The 10-second takeaway
For the quarter ended June 30 (Q2), EMC met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share grew.
Gross margins contracted, operating margins grew, net margins increased.
EMC tallied revenue of $5.61 billion. The 34 analysts polled by S&P Capital IQ expected net sales of $5.61 billion on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $5.31 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 $0.42. The 38 earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. Non-GAAP EPS of $0.42 for Q2 were 7.7% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.32 for Q2 were 10% higher than the prior-year quarter's $0.29 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 62.5%, 10 basis points worse than the prior-year quarter. Operating margin was 18.3%, 40 basis points better than the prior-year quarter. Net margin was 12.5%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.79 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $23.42 billion. The average EPS estimate is $1.86.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,726 members out of 3,861 rating the stock outperform, and 135 members rating it underperform. Among 721 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 703 give EMC a green thumbs-up, and 18 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 $29.22.
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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.