Boston, MA 10/23/2013 (wallstreetpr) – Shares of EMC Corporation (NYSE:EMC) opened 5% percent down after came out with a disappointing set of numbers. And if results below expectations weren’t enough, company went ahead and cut its full year forecasts blaming US government for it.
Company reported revenues of $5.5 billion for quarter ending September. Though this was $200 million above what company managed in last year’s third quarter, it was way below street expectation of $5.8 billion. On earnings front too, company came out with a net income of 40 cents per shares. And this disappointed markets more as these were almost 12% below market expectations of 45 cents. As per company’s management, this fall in numbers is a direct result of US government shutdown. Company claims that numbers have increased in each and every geography apart from US. And since US government is the single biggest customer for this virtual information infrastructure provider, it was quite obvious that this time around, company would not be able to repeat its past performance. Sources tell them company generated around 8% of its revenue from the American government.
Company has taken note of this government failure and decided to lower its earnings guidance. Company has reduced its revenues expectations for full year from $23.50 billion to $23.25 billion. Similarly for earnings, company has reduced its full year earnings by 5 cents to $1.80 per share. But it seems that a few analysts believe that company may be back in 2015 with a good set of numbers as the loss of revenue from government shutdown is actually a postponement of revenue for the company. It is like a delayed contract execution for the company and hence company is expected to post healthy numbers sometime around second and third quarter in 2014. These analysts also believe that company’s shares are a good bet for next one year.
