Data storage solutions provider EMC Corp. (EMC: Quote) reported Tuesday a 19 percent rise in second-quarter profit, helped by a 10 percent growth in revenues and margin expansion. On a per share basis, quarterly earnings met analysts' expectations, while revenues came above their view. The company also backed its full-year 2012 earnings view.
EMC said it continued to experience strong customer demand for its broad portfolio of services and expects to achieve its full-year 2012 goals for consolidated revenue, non-GAAP earnings per share and free cash flow.
Joe Tucci, chairman and chief executive officer of the company said, "We are seeing a transformation in the IT industry unlike anything we have seen before. Organizations are moving quickly to adopt cloud computing and take advantage of both the efficiency and agility that comes with running IT-as-a-Service."
In the second quarter, net income attributable to the company grew to $649.51 million or $0.29 per share, from $546.49 million or $0.24 per share reported last year.
Excluding certain items, earnings improved to $0.391 per share from $0.348 per share a year earlier. On average, 35 analysts polled by Thomson Reuters expected earnings per share of $0.39 for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew 10 percent to $5.31 billion, which also exceeded analysts' estimate of $5.29 billion.
Revenues from the U.S. grew 14 percent to $2.9 billion and represented 54 percent of consolidated second-quarter revenue. Revenues outside of the U.S. increased 5 percent to $2.5 billion and represented 46 percent of the total revenues.
Operating margin improved to 17.8 percent from 15.4 percent in the preceding year. On a non-GAAP basis, operating margin was 24 percent, higher than 23.1 percent a year ago.
Looking ahead to full-year 2012, the company still expects earnings per share to be $1.25 and consolidated non-GAAP earnings per share are estimated to be $1.70. Analysts project full-year earnings of $1.73 per share.
Consolidated revenues for the year are expected to be $22 billion. Analysts are looking for revenues of $22.07 billion for the full year.
In addition, EMC said it expects to repurchase $700 million of its common stock in 2012.
EMC closed Monday's regular trading at $24.8 on the NYSE. In the pre-market activity, the shares are down 0.81 percent.
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by RTT Staff Writer
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