VMware Earnings: Here’s Why Investors Like These Results

VMware, Inc. (NYSE:VMW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down up 11.53%.

VMware, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.18% to $0.79 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Rose 10.42% to $1.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: VMware, Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.77. It beat the average revenue estimate of $1.23 billion.

Quoting Management: “The second quarter was a strong finish to a solid first half of 2013 for VMware,” said Pat Gelsinger, chief executive officer, VMware. “We see a significant market opportunity in the second half of 2013 and beyond. VMware continues to succeed because we are uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As we help them bridge to this new world, we’re empowering businesses to capture new levels of efficiency, control and agility.”

Key Stats (on next page)…

Revenue increased 4.07% from $1.19 billion in the previous quarter. EPS increased 6.76% from $0.74 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.81 and has not changed. For the current year, the average estimate is a profit of $3.28, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)