Earnings Preview: EMC Corp. - Analyst Blog
20 4월 2011 - 12:39AM
Zacks
EMC Corp. (EMC) is slated to release its first
quarter 2011 earnings before the market opens on April 20, 2011.
EMC holds a leadership position in the storage hardware and
software segment and is also a leading provider of data storage
systems.
EMC did not provide any quarterly guidance during its fourth
quarter earnings call.
The current Zacks Consensus Estimate for the first quarter is
currently 25 cents per share, reflecting an increase of 25% from
the year-ago quarter. The projected EPS includes stock-based
compensation but excludes one-time charges.
EMC posted an average earnings surprise of 5.67% in the trailing
four quarters, implying that it has surpassed the Zacks Consensus
Estimate by the same magnitude over the last four quarters.
We believe EMC will benefit from its leadership position in the
storage market in the first quarter. According to research group
IDC, Worldwide external disk storage systems factory revenues
increased 16.2% to $6.1 billion, in the fourth quarter of 2010.
Total disk storage systems market grew 14.3% year over year to $8.3
billion.
EMC was the overall external disk storage software market leader
with a 26.0% market share in the fourth quarter of 2010, beating
the likes of International Business Machines Corp.
(IBM), Hewlett Packard Co. (HPQ), NetApp
Inc. (NTAP), Hitachi Data Systems and Dell
Inc. (DELL).
EMC’s recent market share gains were attributable to global
customer acceptance of its wide range of storage technologies. EMC
boasts the most comprehensive and current storage product line
available.
In January 2011, EMC further extended its technology leadership
by unveiling a record high of more than 40 new products and
technologies addressing the fastest growing areas of the industry,
including big data (tools, processes and procedures allowing an
organization to create, manipulate, and manage very large data sets
and storage facilities) and cloud computing.
EMC unveiled the EMC VNX family of products that scales from
entry-level to datacenter-class systems. We believe the new VNX
family will provide EMC a safe cushion to maintain its leadership
position in worldwide external disk storage systems, particularly
in the SMB sector where it faces significant competition from
NetApp.
Fourth Quarter Recap
EMC Corp. reported fourth quarter 2010 results, with adjusted
earnings increasing 33.3% to 36 cents per share versus 27 cents in
the fourth quarter of 2009. Earnings per share (including
stock-based compensation but excluding restructuring charges)
inched past the Zacks Consensus Estimate by a penny. The
year-over-year growth was primarily driven by stronger revenues in
the quarter.
Revenue climbed 19.2% year over year to $4.89 billion in the
fourth quarter, surpassing the Zacks Consensus Estimate of $4.79
billion. This growth was primarily attributed to continued strong
demand for EMC’s storage, data protection, virtualization and
security products and services in the quarter.
During the quarter, EMC’s gross and operating margins improved
substantially on a year-over-year basis. Gross margin expanded 230
basis points to 61.9%, primarily driven by strong revenue growth.
Non-GAAP operating profit margin increased 300 basis points to
25.4%, reflecting stringent cost control.
As of December 2010, cash and cash equivalents including
short-term investments were $5.37 billion compared with $6.65
billion at the end of September, 2010. The company paid its
long-term convertible debt at the end of the quarter.
2011 Guidance
Through its combined focus on revenue growth, accelerated
investment in research and development and continued cost
containment efforts, EMC expects to increase its 2011 earnings. The
company is also expected to benefit from improved IT spending going
forward.
EMC expects fiscal 2011 revenues of $19.6 billion. GAAP net
income is expected to be $2.4 billion, while non-GAAP net income is
expected to be $3.25 billion. The estimated GAAP earnings for 2011
are $1.07 a share, while non-GAAP earnings are $1.46 a share.
Currently, the Zacks Consensus estimate is pegged at $1.23 per
share for fiscal 2011.
No Movement in Estimates
We maintain our Neutral rating on EMC Corp. over the long term
(6-12 months).
Given no change in the Zacks Consensus Estimate for the first
quarter of 2011 in the last 60 days, analysts appear to be
confident about their expectations.
EMC has a Zacks #2 Rank, which implies a Buy rating in the near
term (1-3 months).
DELL INC (DELL): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
NETAPP INC (NTAP): Free Stock Analysis Report
Zacks Investment Research
Dell (NASDAQ:DELL)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Dell (NASDAQ:DELL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024