EMC Corp. (NYSE: EMC) reported fourth-quarter and full-year 2013 results after markets closed Tuesday. The IT infrastructure giant reported adjusted diluted quarterly earnings per share (EPS) of $0.60 on revenues of $6.68 billion. In the same period a year ago, the company reported EPS of $0.54 on revenues of $6.03 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $0.59 on revenues of $6.63 billion.
The company’s outlook for 2014 includes revenue growth to $24.5 billion, and adjusted EPS is targeted at $1.95. Both estimates are lower than the analysts’ consensus calling for EPS of $2.04 on revenues of $24.96 billion.
The company’s CEO said:
There’s no doubt that the move from the second platform to the third platform of IT, underpinned by the mega trends of mobile, cloud, Big Data and social, is having a profound impact on business and transforming the way we work and live. 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.
EMC’s results were essentially pre-announced when the company said last week that it would buy mobile security company AirWatch for $1.54 billion. The company also offered 2014 guidance on first quarter 2014 revenues and earnings. Both were lower than the consensus estimates, and the company reaffirmed its forecasts Tuesday night. Investors with short memories dumped on the stock again Wednesday morning.
Shares were down about 4% at $24.35 in premarket trading. The stock’s 52-week range is $21.45 to $27.34. Prior to this release, Thomson/Reuters had a consensus price target of around $29.50 on the company’s shares.
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