Earnings Preview: Analysts Expect EMC Revenue, Earnings to Dip from Previous Quarter

Now's the time to start prepping for EMC EMC! Don't be caught off-guard: The company releases its next round of earnings this Wednesday, July 20, 2011.

Need to cram before Wednesday's earnings release? We've got just the thing. Here's an advanced look at EMC's second quarter earnings report.

Let's Do the Numbers:

Based on estimates, investors are readying for a positive EPS reading of 27 cents per share and revenues of $4.73 billion. Can EMC manage the estimated rise in EPS and revenues as analysts are predicting? We'll have to wait until Wednesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.25 $0.35 $0.24 $0.22
EPS Actual $0.24 $0.36 $0.25 $0.23

Stock Performance:

As of July 18, 2011, EMC's current share price was $26.64. Shares are up 16.3% year to date. For a full 12 months, the return has risen by 32.7%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for EMC is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how EMC compares to rivals in the same sector? Here are a few of the company's peers.
  • Brocade Communications Systems BRCD: Moderate Buy with a $0.09 recent quarter EPS
  • Hewlett-Packard Company HPQ: Hold with a $1.24 recent quarter EPS
  • International Business Machines IBM: Moderate Buy with a $2.31 recent quarter EPS

EMC is in the computer-storage development industry, which has experienced price/earnings growth of 1.4%.

Finally, a description of the main business areas of the company, in case you need a little refresher: EMC and its subsidiaries deliver and support a range of information infrastructure technologies and solutions.

Take Action:

That's your advanced look at EMC's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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