LONDON, November 12, 2014 /PRNewswire/ --
Investor-Edge.com has issued free earnings review on EMC Corp. (NYSE: EMC). On October 22, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on EMC Corp. During Q3 FY14, EMC Corp.'s saw record third-quarter consolidated revenue which grew 9% on a Y-o-Y basis while its GAAP and non-GAAP diluted EPS increased 4% and 10%, respectively, from Q3 FY13. Our free coverage report can be accessed at:
http://www.investor-edge.com/register
Earnings Overview
During Q3 FY14, EMC Corp. reported net revenue of $6,032 million compared to $5,539 million in Q3 FY13. The company's net revenue during the reported quarter came above Bloomberg analysts' forecast of $5,999 million. The free research on EMC can be downloaded as in PDF format at:
http://www.Investor-Edge.com/EMCFreeReport
EMC Corp.'s GAAP gross margin decreased slightly to 62.0% in Q3 FY14 from 62.1% in Q3 FY13 and GAAP operating margin fell to 15.7%, from 16.4% in Q3 FY13. On the other hand, GAAP net income attributable to EMC Corp. increased marginally to $587 million, or $0.28 per weighted average diluted share, in Q3 FY14, from $586 million, or $0.27 per weighted average diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report GAAP net income of $709 million, or $0.33 per weighted average diluted share in Q3 FY14.
On a non-GAAP basis, the company reported gross margin of 63.7% in Q3 FY14 compared to 63.9% in Q3 FY13. Non-GAAP operating margin was 23.1%, compared to 23.4% in Q3 FY13. The company's non-GAAP net income increased to $903 million, or $0.44 per weighted average diluted share, in Q3 FY14, from $860 million, or $0.40 per weighted average diluted share, in Q3 FY13. Sign up and read the free analyst's notes on EMC at:
http://www.Investor-Edge.com/EMC-12112014
Commenting on the results, EMC Corp.'s Chairman and CEO, Joe Tucci said that the company's continued momentum is the evidence that its strategy and execution are working. Mr. Tucci also stated that the company's strategically aligned businesses - EMC Information Infrastructure, VMware, Pivotal and RSA, are well positioned to capitalize on the massive IT market opportunity. He further informed that from his conversations with customers, it's clear that the company has the right best-of-breed technologies in cloud, mobile, Big Data and security, and offer a level of choice and flexibility second-to-none.
The company generated operating cash flow of $1.7 billion and free cash flow of $1.3 billion in Q3 FY14 and ended the quarter with $15.4 billion in cash and investments. EMC Corp. repurchased approximately $375 million worth of its common stock in Q3 FY14 and paid quarterly dividend of approximately $240 million to its shareholders.
In its guidance for FY14, the company expects consolidated revenues to be approximately $24.5 billion. Consolidated GAAP and non-GAAP operating income are expected to be approximately 16.5% and 24.0% of revenues, respectively. Further, the company estimates consolidated GAAP and non-GAAP earnings per weighted average diluted share of approximately $1.29 and $1.90, respectively for FY14. Consolidated net cash provided by operating activities is expected to be approximately $6.80 billion and free cash flow is expected to be approximately $5.35 billion for FY14. The company also expects to repurchase an aggregate of $3.0 billion of the company's common stock in FY14. Visit Investor-Edge and access the latest research on EMC at:
http://www.Investor-Edge.com/EMCEarningsCoverage
Stock Performance
On the day of the earnings release, October 22, 2014, EMC Corp.'s stock ended the session at $27.37, up 0.63%. The stock has maintained mostly a positive trend since then. On the last close, Tuesday, November 11, 2014, it finished at $29.02, down 0.48%, after vacillating between $28.96 and $29.30. A total of 9.03 million shares were traded which was much below its three months average volume of 14.71 million shares. Over the previous three sessions, the company's shares have fallen by 0.99%. However, the stock has witnessed a gain of 3.72% over the last one month and 15.39% from the beginning of 2014. Shares in EMC Corp. closed above their 50-day and 200-day moving averages of $28.71 and $27.39, respectively. Furthermore, the stock traded at a PE ratio of 21.41.
Sneak Peek to Corporate Insider Trading
In the last one month, there were 46 insider transactions made by 10 individuals. Between October 23, 2014 and October 30, 2014, a total of 394,766 shares of the company have been purchased by insiders at an average price of $15.81 per share, for a total value of $6,242,719. During the same time period, a total of 980,779 shares have been sold at an average price of $27.85 per share, for a total consideration of $27,313,087. These are some of the insider trading transactions: on October 23, 2014, Denis Cashman, CFO at EMC Information Infrastructure, purchased a total of 85,000 shares at an average price of $16.12 per share and sold a total of 117,250 shares at an average price of $27.43 per share. Additionally, on October 27, 2014, John R. Egan, Director at EMC Corp., sold 125,000 shares at a price of $28.37 per share and on October 28, 2014, he sold another 75,000 shares at $28.44 per share. Complimentary in-depth research on EMC is available at:
http://www.Investor-Edge.com/EMCInsiderTrading
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