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EMC's 1st-qtr forecast misses estimates; shares fall
January 29, 2014 / 1:06 PM / 4 years ago

EMC's 1st-qtr forecast misses estimates; shares fall

(Reuters) - EMC Corp EMC.N, the world’s largest data storage equipment maker, forecast current-quarter results below analysts’ estimates, sending its shares down nearly 3 percent in trading before the bell.

The company, which said it would cut jobs in the first quarter, forecast adjusted earnings of 35 cents per share on revenue of about $5.39 billion.

Analysts on average were expecting earnings of 43 cents per share on revenue of $5.8 billion, according to Thomson Reuters

I/B/E/S.

The company said it approved a restructuring plan consisting of job cuts that would be “substantially” completed by the end of the first quarter and result in a charge of $100-$120 million.

EMC unit VMware Inc (VMW.N) reported a slightly better-than-expected quarterly profit on Tuesday, helped by higher revenue from license sales.

EMC’s net profit rose 17 percent to $1.02 billion, or 48 cents per share, in the fourth quarter from $870 million, or 39 cents per share, a year earlier.

Excluding items, the company earned 60 cents per share.

Revenue rose 11 percent to $6.7 billion.

Analysts on average had expected earnings of 59 cents per share on revenue of $6.63 billion.

EMC shares were down about 2 percent at $24.80 in premarket trading on Wednesday.

Reporting by Neha Alawadhi in Bangalore; Editing by Don Sebastian

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