EMC profit rises, but falling shares reflect company's outlook
EMC Corp. (NYSE:EMC) provided a forward outlook that disappointed investors, indicated by a 4 percent dive in company share value, despite news that it could top sales targets and posted a quarterly profit that beat Wall Street estimates, Reuters reports.
According to the news source, EMC, the largest data storage company in the world, announced on Thursday it would meet or even exceed its 2012 goal to hit $22 billion in revenue. The company also said it would likely achieve 2014 consolidated revenue of more than $28 billion.
The Wall Street Journal reports EMC revenue in the first quarter fell 10 percent from the previous year, which company executives say could be due to unfair quarter comparisons. Chief executive Joe Tucci said EMC had a "tremendous [first] quarter" in 2011 because of the introduction of a new technology.
Tucci added customers could also be putting off high-end storage purchases as they wait for new products to be revealed later in the year.
"Customers expecting that will not be disappointed," he said. "And it's coming soon."
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