Information services company EMC will deliver third quarter earnings tomorrow morning however expectation is mixed.
The company is expected to surpass its earnings from the same period a year ago, with profit of 17 cents per share on $3.2 billion in sales according to Thomson Financial.
Such results would represent a 30% increase in EMC's profits and a 14% rise in the company's sales from the year ago quarter. EMC's stock has put in a strong run this year, rising more than 71% to trade Wednesday at $22.47.
Despite decent backlog coverage off of (the second quarter), our checks indicate EMC struggled to close a challenging (third quarter), said RBC Capital Markets analyst Thomas Curlin in a note to investors.
In the second quarter, EMC's North American business posted a 20%sales increase and the company's overseas business grew 23%. Its fastest-growing area was Asia, Japan and the Pacific with a 32% gain.
EMC still owns about 87% of VMware and Craig said that owning EMC shares, makes owning the combined company a good way to capture the upside in VMware, while not paying a premium, for the stock.
EMC's rivals include IBM, Hewlett-Packard, and Network Appliance Inc.