EMC Results Miss Expectations
EMC Corp.'s corporate headquarters in Hopkinton.
EMC Corp. of Hopkinton reported lower-than-expected quarterly results Tuesday and cut its full-year sales and profit forecasts amid a fall in U.S. government spending.
The world’s leader in data storage reported 40 cents of earnings per share, below analyst’s estimates of 45 cents. Year-over-year sales rose 5 percent to $5.54 billion, but missed analysts’ predictions of $5.8 billion.
The company lowered its full-year revenue forecast slightly to $23.25 billion from $23.5 billion, and now expects annual adjusted earnings per share to come in at $1.80 rather than $1.85.
EMC said the results were impacted by a decline in federal spending – which accounts for 8 percent of the company’s revenue – and storage product orders that came in later than expected.
“While our financial results were impacted by a decline in US federal spending and a backend-loaded quarter, we achieved almost all of our strategic and operational goals,” said David Goulden, president and COO, in a statement. Excluding federal spending, “we were pleased to see storage demand accelerate in the third quarter…and we think this is an encouraging sign for the storage market overall.”
On the positive front, California-based EMC subsidiary VMware Inc. posted earnings of 84 cents per share, beating analyst’s expectations of 82 cents. VMware’s revenue also rose 14 percent to $1.29 billion.
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