VMware Earnings: Revenue Jumps and Tops View

VMware Inc. (NYSE:VMW) reported its results for the third quarter. VMWare is a provider of virtual infrastructure software solutions from the desktop to the data center. It works with more than 1,300 technology partners, including leading server, microprocessor, storage, networking and software vendors.

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VMware Inc. Earnings Cheat Sheet

Results: Net income for the computer software fell to $156.8 million (36 cents per share) vs. $177.5 million (41 cents per share) a year earlier. This is a decline of 11.7% from the year-earlier quarter.

Revenue: Rose 20.4% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: VMware Inc. fell short of the mean analyst estimate of 42 cents per share. Analysts were expecting revenue of $1.12 billion.

Quoting Management: “Third quarter results reinforce VMware’s leadership and momentum as cloud emerges as the de facto IT infrastructure standard,” said Pat Gelsinger, chief executive officer, VMware. “Our Software Defined Data Center platform gives customers a clear path to the cloud, and the recently announced VMware vCloud Suite of virtualized compute, storage, networking and management capabilities demonstrates our unique ability to deliver proven solutions that speed this journey.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 25.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 31.9% from the year earlier quarter.

The company’s net income has fallen in each of the last two quarters. In the second quarter, net income fell 12.9% from the year-earlier quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 5 cents.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 52 cents a share. The average estimate for the fiscal year has remained at $1.94 per share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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