Market Update: EMC Corporation (NYSE:EMC) – Dell acquisition target EMC to cut jobs in Q1

[at American City Business Journals] – EMC Corp., the Massachusetts tech giant that Dell Inc. is scheduled to buy later this year, disclosed plans to cut an unspecified number of jobs in the first quarter as part of an $850 million initiative to reduce costs. EMC approved the layoffs on Dec. 30 and revealed its “restructuring plan” citing a need “to keep pace with changes in the industry” in a Dec. 31 filing with the U.S. Securities and Exchange Commission. “The total charge resulting from this plan is expected to be approximately $250 million, with total cash payments associated with the plan expected to be $220 million.” Round Rock-based Dell announced in October plans to buy EMC (EMC) for $67 billion, setting the stage for the largest merger in the history of the technology industry. Read more on this. EMC Corporation (EMC) , valued at $49.46B, opened this morning at $25.35. Looking at today’s market, EMC one day range is $25.31 to $25.57 with a trailing 52-week range being $22.66 to $30.05. EMC (EMC) shares are currently priced at 14.11x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 8.13x earnings multiple for the same period. And for passive income investors, the company pays shareholders $0.46 per share annually in dividends, yielding 1.79%. Consensus earnings for the current quarter by the 28 sell-side analysts covering the stock is an estimate of $0.65 per share, which would be $0.04 worse than the year-ago quarter and a $0.03 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $1.82 would be a $0.08 worse when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $7.14 Billion. If reported, that would be a 1.28% increase over the year-ago quarter. In terms of ratings, Wells Fargo downgraded EMC from Outperform to Market Perform (Nov 11, 2015). Previously, Stifel downgraded EMC from Buy to Hold. Investors should keep in mind is that the average price target is $29.80, which is 17.55% above where the stock opened this morning. See more in (NYSE:EMC) Similar Articles: Stock Update: EMC Corporation (NYSE:EMC) – EMC exec predicts job growth after Dell merger Market Update (NYSE:EMC): Dell buying EMC in $67 billion bet on data storage Market Update: EMC Corporation (NYSE:EMC) – EMC deal would be stretch for Dell, analysts say