Arik Hesseldahl

Recent Posts by Arik Hesseldahl

EMC Earnings Come in Below Expectations, While VMware Lowers Outlook

Enterprise storage giant EMC just reported quarterly earnings this morning, and they’re lighter than the Street expected.

Sales were up 6 percent to $5.39 billion, about $30 million below the consensus of $5.42 billion. Earnings per share were 39 cents, a penny off the expected 40 cents.

Never fear, though. EMC says it will still meet its guidance for the fiscal year. It still expects to earn $1.85 a share on sales of $23.5 billion. In the meantime, it will buy back $1 billion worth of stock this year.

EMC shares fell by 2 percent in pre-market trading.

Meanwhile, VMware, the cloud computing software company in which EMC is a majority shareholder, is getting whacked this morning on disappointing outlook. It reported earnings yesterday. VMware said it now expects sales in the range of $1.21 billion to $1.24 billion, below the consensus view of $1.25 billion. VMware shares are falling in pre-market trading. As of 8:45 am ET, the price was $71.51, down $4.19 or 5.5 percent.

You can’t say you weren’t warned. IBM’s first earnings miss in eight years certainly had all the appearances of a big red flag about the IT industry generally, and hardware sales specifically. Now we have to see whether or not Big Blue turns out to be an accurate read-through for NetApp and Hewlett-Packard.

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