Shares of EMC (EMC) are up $1.38, or 6%, at $24.30 in late trading after the company pre-announced Q2 revenue and earnings per share essentially in line with what the Street had been expecting, reaffirmed its year outlook, and announced a management shuffle with VMWare (VMW), of which it owns 80% of the stock, confirming some aspects of speculation that had taken place over the last 24 hours.
Revenue in the three months ended in June rose to $5.31 billion, yielding EPS of 39 cents, excluding some costs.
Analysts had been modeling $5.31 billion and 40 cents.
The company said it still expects to achieve revenue of $22 billion and EPS, excluding some costs, of $1.70 per share this year. That is more or less in line with analysts’ estimates at present.
EMC said VMWare CEO Paul Maritz would join the company as “chief strategist,” working under CEO Joe Tucci, and that he will be replaced at VMware by Pat Gelsinger, currently EMC’s president and COO for its information infrastructure products. Gelsinger’s duties will be assumed by David Goulden, EMC’s CFO, who will expand his role in the company to include sales, marketing, services, and other oversight while retaining CFO responsibility, as well as overall COO and president for the entire company.
The company is hosting a conference call with analysts at 4:30 pm to discuss the announcements, and you can catch the webcast of it here.
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