logo
Share SHARE
FONT-SIZE Plus   Neg

VMware Q1 Results Beat Estimates, But Shares Tumble On Outlook

Shares of VMware, Inc. (VMW) tumbled 6 percent in extended trade Tuesday after the virtualization software maker forecast revenues for the second quarter below analysts' estimates. Nevertheless, the company's revenue and adjusted profit for the first quarter beat analysts' expectations.

License revenues for the quarter edged up 1 percent from the previous-year quarter to $488.23 million, while services revenues rose 23 percent to $703.24 million.

The Palo Alto, California-based company's first-quarter net income declined to $173.57 million or $0.40 per share from $191.44 million or $0.44 per share in the year-ago period.

The latest quarter's results included a realignment charge amounting to $62.88 million. Excluding this, adjusted earnings for the quarter was $319.05 million or $0.74 per share, compared to adjusted earnings of $287.35 million or $0.66 per share in the prior-year quarter.

On average, 40 analysts poll by Thomson Reuters expected the company to earn $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 13 percent to $1.19 billion from $1.06 billion in the same period last year. Analysts had a consensus revenue estimate of $1.18 billion.

Looking ahead to the second quarter, VMware forecasts revenues in the range of $1.21 billion to $1.24 billion, representing an increase of about 8 to 10 percent from the previous-year quarter. Analysts currently expect second-quarter revenues of $1.26 billion.

For fiscal 2013, the company forecasts revenues in a range of $5.12 billion to $5.24 billion, an increase of about 11 percent to 14 percent from the prior year. Analysts currently expect full-year revenues of $5.21 billion.

VMW closed Tuesday's regular session at $75.70, up $1.91 or 2.59 percent on a volume of 5.34 million shares. However, in after-hours, the stock declined $4.55 or 6.01 percent to $71.15.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Wal-Mart Stores Inc., the world's largest retailer, reported a decline in second-quarter profit with a significant charge. Adjusted earnings topped analysts' estimates with higher comparable sales. Looking ahead, for the third quarter, the company projects earnings in line or below market view. The company also issued earnings forecast for fiscal 2018. The development of Alzheimer's drugs has been marred by a high failure rate. A U.S. study, which analyzed how the Alzheimer's clinical trials fared during the period of 2002 to 2012, revealed a failure rate of 99.6% compared to a failure rate of 81% for cancer drugs. Apple Inc. plans to invest roughly $1 billion to procure and produce original content over the next year, The Wall Street Journal reported, citing people familiar with the matter. The planned investment in Hollywood reportedly could result in as many as 10 new shows.
comments powered by Disqus
Follow RTT