Earnings Preview: EMC Reports Q4 Results Tuesday

| About: Dell Technologies (DVMT)
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EMC Corporation (EMC) is scheduled to release last fiscal quarter's results before the opening bell on January 24, 2012.

EMC Corporation develops, delivers, and supports the information and virtual infrastructure technologies and solutions. The company was founded in 1979 and is headquartered in Hopkinton, Massachusetts. EMC trades an average of 21.4 million shares per day.

52 Week High: $28.73
52 Week Low: $19.84
Book Value: $8.78
Float Short: 5.14%

Analysts are expecting an improvement of $0.09 in earnings per share compared to last quarter's results of $0.37. The estimated mean earnings are $0.46 per share.

The current trailing twelve months P/E ratio is 18.9. The forward P/E ratio is 16.03. The chart is starting to look better. While EMC is still trading well below the 200 day moving average, the shorter moving averages are trending higher. Since the start of the year a couple of weeks ago, the price has done very well and moving into earnings this is a bullish trend. On Wednesday, the stock price broke though a trendline, indicating higher prices for those that follow Tom DeMark TDLines. Short interest is somewhat high, but nothing to be overly concerned with. Short interest tends to be the smart money, but with the PE so low, EMC is really going to have to disappoint to get crushed. I would not short here.

For the same fiscal period year-over-year, revenue has improved to $17.02 billion for 2010 vs. $14.03 billion for 2009. The bottom line has rising earnings year-over-year of $1.90 billion for 2010 vs. $1.09 billion for 2009.The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $2.68 billion for 2010 vs. $1.41 billion for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for EMC

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 4.90 B $ 4.98 B $ 75.42 M 1.54%
Jun-11 $ 4.73 B $ 4.85 B $ 110.89 M 2.34%
Mar-11 $ 4.51 B $ 4.61 B $ 98.17 M 2.18%
Dec-10 $ 4.79 B $ 4.89 B $ 97.49 M 2.03%
Sep-10 $ 4.15 B $ 4.21 B $ 65.51 M 1.58%

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results EMC Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for EMC:

paid2trade.com short interest tool. The total short interest number of shares for EMC

The number of days to cover short interest based on average daily trading volume for EMC:

paid2trade.com number of days to cover short interest based on average daily trading volume for EMC

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.