EMC’s Stock Fell 14% in 2015


Jan. 12 2016, Updated 11:10 a.m. ET

EPS fell 8.3% in 3Q15

In this series, we will analyze the performance of EMC (EMC) in 2015 as well as the important events for the company during the year. As the below chart shows, the share price of EMC fell 14% in 2015 from $29.83 to $25.68. Its share price fell 6.2% on October 21, 2015, as it reported an 8.3% YoY (year-over-year) drop in EPS (earnings per share) in its 3Q15 earnings results. Its reported revenues of $6.1 billion were in line with analyst estimates.

On October 20, 2015, EMC and VMware (VMW) announced plans to spin off Virtustream to form a new cloud company.

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A tough year for the storage sector

Driven by a slowdown in the personal computer (or PC) segment, shares in the technology, storage, and hardware spaces fell last year. According to market research firm Gartner, PC shipments are expected to fall 7% YoY in 2015. A strong US dollar and flat YoY sales in Europe and emerging markets (EEM) have impacted revenues of firms in this segment.

Shares of Seagate (STX) and Western Digital (WDC) fell 43% and 44%, respectively, in 2015. Firms such as NetApp (NTAP) and EMC, which are a part of the enterprise storage sector and package the drives of Seagate and Western Digital, performed poorly in 2015 as the industry is migrating towards flash chips instead of the traditional disks.


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