Headquartered in Hopkinton, Massachusetts, EMC Corporation EMC offers storage and security solutions for every layer of IT architecture. The company’s evolving product portfolio is focused on providing the infrastructure for Cloud Computing and Big Data.
Recently, EMC Corp announced that it was being taken over by Dell Inc and private equity firm Silver Lake in a $67 billion deal. EMC shareholders will receive $24.05 per share in cash along with tracking stock related to a portion of EMC’s economic interest in VMware. VMware will continue to be a publicly traded company.
Moreover, yesterday, EMC Corp and VMware announced their plans to form a new cloud company by spinning out Virtustream. While the news in itself is no big deal, the timing of this announcement is perplexing as it means that Dell will also have ownership of Virtustream.
Also, its noteworthy that post spin-out, Virtustream's financial results will be consolidated with that of VMware (from the first quarter of 2016). This move, it seems, is an attempt by Dell to reinforce the fact that VMware’s business model will not be affected following its acquisition of EMC.
Zacks Rank: Currently, EMC has a Zacks Rank#4 (Sell) but that could change following its third quarter 2015 earnings report which has just released.
We have highlighted some of the key details from the just-released announcement below:
Earnings: EMC reported adjusted earnings (including stock-based compensation expense but excluding other items) of 33 cents, in line with the Zacks Consensus Estimate. However, earnings declined 8.3% year over year.
Revenue: Revenues of $6,079 million came slightly above the Zacks Consensus Estimate of $6,063 million and improved 0.8% year over year.
Key Stats: Non GAAP operating margin of the company decreased of 370 basis points to 19.4%.
Stock Price: Shares prices are down 2% in the pre-market trading session.
Check back later for our full write up on this EMC earnings report later!
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