Wednesday, April 20, 2011

EMC (EMC) Driven by International Markets

EMC (NYSE:EMC) produced record results in the first quarter, driven by expansion of its international markets and demand for data-storage products.

As the cloud computing trend appears sustainable and expected to grow for years, EMC is positioned to take advantage of that as efficient storage is looked for by companies.

EMC reported a first-quarter profit of $477.1 million, or 21 cents a share, up from $372.7 million, or 17 cents a share, last year in the same quarter. Minus items, earnings jumped to 31 cents from 26 cents, meeting expectations from analysts polled by Thomson Reuters.

Revenue climbed 18% to $4.61 billion, beating analysts' projections of $4.51 billion.

Operating margin jumped to 14.6% from 12.9% amid stronger revenue from the company's Europe, Middle East and Africa region as well as its Asia Pacific region.

Revenue from the U.S., still EMC's biggest market, increased 12 percent to $2.4 billion. Sales in the Europe, Middle East and Africa region rose 21 percent, while Asia-Pacific revenues were up 43 percent.

EMC was trading at $27.74, gaining $1.02, or 3.82 percent, as of 12:35 PM EDT.

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