Soft Guidance From EMC Corporation (NYSE:EMC)
EMC Corporation (NYSE:EMC) reported a strong fourth quarter results. Despite showcasing the strong earnings, the company presented a weak outlook for the coming times.
Sales for EMC Corporation increased 11% in a year over year basis to $6.7 billion. The Non-GAAP earnings also saw an increase by around 11% reaching a figure of $0.60 per diluted share. The estimates from analysts also stood pretty close to the report as they expected figures to be $6.6 billion in revenue and adjusted earnings worth $0.59 per share.
Weak 2014 projections
The projections for EMC Corp for the year 2014 are not that ambitious. The company expects sales of 24.5 billion for the entire year 2014. For the first quarter, the expected sales revenue is around $5.4 billion. Analysts had a slightly greater expectation from the company’s projections pinning their hopes towards revenue of $25 billion for the year and an expectation of $5.8 billion for the first quarter of 2014.
CEO of EMC Corporation Joe Tucci said that they are betting on the game changers in the market like mobile social media and Big Data to help boost its future. He continued that the platforms he mentioned have a profound impact on how the company work and live especially in the current timeframe.
He added, “Customers and partners have these transformations in their sights and are embracing EMC’s vision, strategy and best-of-breed portfolio to capitalize on them.”
In the after hours of trading on Tuesday, shares for EMC fell by around 1.5%, which was mainly because of the report that was put out by VMware which is a virtual computing expert. The shares for VMware continued to trade low but the shares for EMC Corporation (NYSE:EMC) managed to rise up above the low on Tuesday matching the prices on Wednesday