VMware Inc. Earnings: Beats Wall Street Expectations

VMware Inc. (NYSE:VMW) reported net income above Wall Street’s expectations for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for the technical and system software company rose to $200.4 million (46 cents per share) vs. $119.9 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 67.2% from the year earlier quarter.

Revenue: Rose 26.9% to $1.06 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: VMW reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. Analysts were expecting revenue of $1.05 billion.

Quoting Management: “The quarter’s strong performance further signals that virtualization is the foundation for simplifying and automating IT,” said Paul Maritz, chief executive officer, VMware. “As customers continue to drive significant IT transformation, our task remains in providing solutions that go beyond cost reduction, yielding business and competitive value.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 33.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 37.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose more than twofold and in the second quarter, the figure rose more than twofold.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 31 cents versus a mean estimate of net income of 33 cents per share.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 38 cents a share. For the fiscal year, the average estimate has been unchanged at $1.51 a share.

Competitors to Watch: Citrix Systems, Inc. (NASDAQ:CTXS), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), EMC Corporation (NYSE:EMC), Symantec Corporation (NASDAQ:SYMC), Oracle Corporation (NASDAQ:ORCL), Quest Software, Inc. (NASDAQ:QSFT), Hewlett-Packard Company (NYSE:HPQ), Google Inc. (NASDAQ:GOOG), and LogMeIn, Inc. (NASDAQ:LOGM).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com