EMC Seen As 'Well-Positioned' For 2006
Kate DuBose Tomassi, 01.25.06, 10:53 AM ET
RBC Capital Markets analyst Thomas Curlin reiterated an “outperform” rating and target price of $16 on EMC (nyse: EMC - news - people ) after the company reported earnings for the fourth quarter of 2005 on Tuesday.
“A refreshed high-end platform, ever-expanding software portfolio and complimentary services offerings leave EMC well positioned to continue to execute on its ILM [information lifecycle management] strategy,” the analyst said in a report Wednesday.
For the fourth quarter and full year of 2005, EMC reported earnings of 17 cents and 53 cents per share on revenue of $2.7 billion and $9.7 billion, respectively.
EMC management cited “solid product momentum and a well positioned software portfolio." The company guided first-quarter earnings to 14 cents per share on revenue between $2.57 billion and $2.59 billion. It guided full-year 2006 earnings to a range of 63 cents to 66 cents per share on revenue between $11.1 billion to $11.3 billion.
“Selling out of the newly released DMX-3 in the fourth quarter, EMC exceeded sales expectations and built a healthy backlog heading into the first quarter of 2006,” Curlin said. "Meanwhile, the forthcoming announcement of a low-end DMX family as well as extensions to the high-end systems bode well for continued near-term performance within this business." |
