EMC Profits Down 24% but Revenue Beats Street Predictions

 
 
By Chris Preimesberger  |  Posted 2009-10-22 Print this article Print
 
 
 
 
 
 
 

Storage company EMC reports overall third-quarter revenue is down 5 percent from a year ago. Nonetheless, EMC, which predicted overall 2009 earnings of 87 cents per common stock share, posted a performance that surpassed most Wall Street expectations in the slow-moving world economy.

External storage market leader EMC reported Oct. 22 that it banked $298 million in profit in the third quarter on total revenue of $3.52 billion, but also that its profit was $95 million-or 24 percent less-than a year ago.

Overall revenue was down 5 percent from a year ago. Nonetheless, EMC, which predicted overall 2009 earnings of 87 cents per common stock share, posted a performance that surpassed most Wall Street expectations in the slow-moving world economy.

Analysts polled by FactSet Research Systems estimated, on average, earnings per share of 21 cents and sales of $3.46 billion, MarketWatch reported. The report also beat First Call analyst average estimates for consolidated revenue by approximately $70 million.

EMC's cash flow is impressive. In the third quarter, the company generated operating cash flow of $888 million and free cash flow of $745 million and ended the quarter with cash and investments of $8.4 billion.

In the year to date, EMC has generated operating cash flow of $2.3 billion and free cash flow of $1.8 billion.

CEO and President Joe Tucci and CFO David Goulden were upbeat in their assessments and future guidance on the early morning earnings call.

"Customers are signaling more comfort spending their IT budgets, which gives EMC confidence in our ability to perform well and achieve our full-year 2009 targets," Tucci said.

 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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