EMC: Wasn’t Tech Spending Accelerating?
EMC (EMC - Annual Report) reported earnings this morning, and their sales of $3.12 billion were higher than consensus of $3.07 billion and earnings per share of $0.16 beat the $0.15 consensus. So why did the guidance for the full year (now half over) fall short of consensus?
Consolidated revenue for 2007 is expected to exceed $12.7 billion.
GAAP diluted earnings per share for 2007 are expected to exceed $0.64.
The consensus estimates were $12.78 billion and $0.68. When I previewed this week’s earnings reports I said EMC provides a decent look at enterprise tech spend. Other reports I have seen indicate that tech spending is improving, not slowing. Is EMC being too conservative, are they losing share, or are the other indicators giving a false reading?
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