EMC Corporation (EMC) Earnings Preview: Will Earnings Top Expectations?


EMC Corporation (NYSE:EMC) is set to disclose its financial numbers for the December quarter on Thursday before the market opens. The company originally scheduled to release it on Wednesday, but due to the storm has postponed it to Thursday. The conference call will follow the results in the morning at 8.30 ET.

As the company was part of the cloud sector, EMC Corporation (NYSE:EMC) is set to consolidate its position in the space. In the previous four quarters, the company’s EPS came in above the Street analysts’ predictions only once and came in line twice. In the other quarter, i.e. the third quarter, its EPS failed to meet expectations.

Expected Earnings

Therefore, it would be interesting to see whether the December quarter could bring in a positive surprise. Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM) have reported significant growth in revenue from cloud, which is a pointer to expect. They have benefited in the third quarter too.

Wall Street analysts’ are projecting EMC Corporation (NYSE:EMC) to deliver earnings growth of 13.3% on revenue uptick of 6.3%. This meant that they were expecting earnings of 68 cents a share on revenues of $7.1 billion compared to 60 cents a share on revenue of $6.68 billion in the previous year quarter.

Stifel analyst, Brad Redback, projects one cent higher than the consensus. This means he is expecting the company to earn 69 cents a share on revenues of $7.12 billion. This indicated the bullishness of what is likely to come.

Rating Of Stock

Stifel has maintained its rating of Buy on the company’s shares with a price objective of $33 citing a lot of moving parts, including the possible meaningful tactical catalyst. The analyst said that its rating was based on valuation. However, the brokerage reduced its estimation of earnings, as well as, revenues for the first quarter, fiscal year 2015 and 2016.

Another brokerage, Pacific Crest has reiterated its rating of an Outperform with a price target of $30 on EMC Corporation (NASDAQ:EMC) shares. The brokerage predicts robust profit growth in the next year on the expected cuts in spending after four years of investments-spree.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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