'Big Data' trend lifts EMC's 2Q net income 19 pct
EMC Corp.'s second-quarter earnings climbed 19 percent as its data storage products fed a voracious appetite for equipment to manage the barrage of information unleashed by Internet-connected computers and smartphones.
The results announced Tuesday contained no surprises after EMC gave a preliminary peek at the numbers last week. EMC management also maintained its previous forecast for earnings and revenue for the full year.
EMC shares added 35 cents, or 1.4 percent, to $25.15 in afternoon trading Tuesday. The stock has surged by about 10 percent since EMC revealed last week that its performance for the three months ending June had matched analyst estimates. That news helped ease concerns that corporate spending on technology might have dropped off dramatically during the spring amid mounting concerns about economic trouble in Europe brought on by unwieldy government debts on the continent.
The company, which is based in Hopkinton, Mass., has been thriving in recent years as the economy's increasing reliance on the Internet spawns more data that companies need to store and analyze. This so-called "Big Data" trend has been a boon for EMC, which specializes in making data storage equipment. The company has now posted 10 consecutive quarters of double-digit growth in its year-over-year profit and revenue.
EMC reported net income of $649.5 million, or 29 cents per share, in the second quarter. That compared to net income of $546.5 million, or 24 cents per share, at the same time last year.
The company said it would have earned 39 cents per share after subtracting certain accounting items and adding in income from its controlling interest in business software maker VMware Inc. The adjusted figured matched the projections of analysts surveyed by FactSet.
Revenue for the period rose 10 percent from last year to $5.3 billion, about $13 million above analyst forecasts.
For the full year, EMC expects adjusted earnings of $1.70 per share on revenue of $22 billion. Analysts are forecasting adjusted earnings of $1.73 per share on revenue of $22.1 billion.