logo
Share SHARE
FONT-SIZE Plus   Neg

VMware Q1 Results Beat Estimates, But Shares Tumble On Outlook

Shares of VMware, Inc. (VMW: Quote) 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
Fortune has once again named Google Inc. (GOOG, GOOGL) as the best company to work for, with Twitter Inc. (TWTR) also joining the annual list for the first time. This is for the sixth time and for the fourth consecutive time that Google has ranked No.1 in the Fortune's annual list of "100 Best Companies... Dunkin' Donuts has agreed to remove a whitening agent called titanium dioxide, commonly a source of nanomaterials, from all powdered sugar used in its donuts. The move follows pressure from advocacy group As You Sow, which put a shareholder proposal asking Dunkin' to reduce the risks of using nanomaterials in its food products. Warren Buffett's Berkshire Hathaway is reportedly planning its first ever European bond sale of 3 billion euros to take advantage of low interest rates in the region, traversing a path taken by a range of home companies in search of cheap funding options. The move comes as the European Central Bank's bond-buying stimulus program of 60 billion euros a month is imminent.
comments powered by Disqus
Follow RTT