EMC Corporation Slumps 3%, Morgan Stanley Jumps 6% On Earnings (NYSE:MS, EMC)
EMC Corporation(NYSE:EMC) shares are under pressure in the pre-market session despite the company posted a better-than-estimated first-quarter earnings aided by strong revenue on increased demand for cloud computing.
The company posted profit of $586.8 million, or 27 cents a share, 3% higher from its year ago profit. On an adjusted basis, the company earned 37 cents a share, ahead of analysts’ estimates by a penny. Consolidated revenue rose to $5.09 billion.
The company said it was well on its way to achieving 2014 consolidated revenue of more than $28 billion, which represents compound annual growth of at least 13% from 2010.
“Based upon our strong start to the year and our opportunity, we now have greater confidence in our ability to meet and potentially exceed our 2012 financial goals for consolidated revenue, non-GAAP EPS and free cash flow,” Chief Financial Officer David Goulden said.
Shares of EMC are down 3.43% to $28.14.
Morgan Stanley(NYSE:MS) soared about 6% after the bank posted solid first quarter adjusted earnings due to rise in trading revenue.
The Wall Street investment bank posted a loss of $119 million, or 6 cents a share, reversing a year ago profit of $736 million, or 50 cents a share. On an adjusted basis, the company would have earned $1.4 billion, or 71 cents per share. Net revenue totaled $6.9 billion. Excluding DVA, revenue was $8.9 billion, up from $7.8 billion a year earlier.
Excluding DVA, Morgan Stanley’s trading revenue rose 33% to $5 billion. Pre-tax income from trading, excluding DVA, more than doubled, to $1.67 billion from $621 million.
Morgan Stanley’s global wealth management business reported net revenue of $3.4 billion, with a pretax profit margin of 11%.