Shares of EMC Corp. (NYSE: EMC) stabilized on Monday after Friday's dramatic earnings warning, which had resulted in the stock losing 25 percent of its value last week. On Monday the stock bounced up 0.72 (3.33%) to $22.32.
In the aftermath of the warning, however, the company's future was anything but clear. The severity of the warning elicited a mixed reaction on Wall Street -- some analysts have downgraded the stock while others have maintained Recommended ratings.
The company announced Friday that earnings will fall as much as 76 percent below estimates, with earnings per share coming in at $0.04 to $0.06 for the second quarter, well below First Call's consensus estimate of $0.17 a share. Revenue is now expected to be about $2 billion -- when most analysts were expecting around $2.4 billion, after already lowering estimates.
The conflicting messages from investment analysts suggest that the storage market is not immune from the economic slump that's causing problems for the rest of the IT market.
Bear Stearns maintains its Attractive investment rating on EMC, saying company fundamentals should improve once the economy picks up.