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
Alaska Air Group Inc., which completed its $2.6 billion acquisition of Virgin America last year, said that the combined company will adopt Alaska Air's name and logo. The Virgin America name will be retired, "likely sometime in 2019," the airline added. Apple Inc. has agreed to acquire Workflow, an iOS app for automating tasks, as well as its development team for an undisclosed sum. Workflow is a personal automation tool that enables the user to drag and drop combination of actions to create workflows for the iPhone, iPad and Apple Watch. After long negotiations to win over one of the largest and fastest growing smart phone markets, Apple has decided to assemble its 4-inch screen iPhone SE in India.
comments powered by Disqus
Follow RTT