VMware Inc. Earnings Cheat Sheet: Earnings Higher Than Expected

VMware Inc. (NYSE:VMW) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for the computer software rose to $191.4 million (44 cents per share) vs. $125.8 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 52.2% from the year-earlier quarter.

Revenue: Rose 25.1% to $1.06 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: VMware Inc. reported adjusted net income of 66 cents per share. By that measure, the company beat the mean estimate of 42 cents per share. It beat the average revenue estimate of $1.03 billion.

Quoting Management: “The quarter’s solid performance across our portfolio underscores the value that VMware is providing customers as they work to transform their IT organizations,” said Paul Maritz, chief executive officer, VMware.

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 30.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 36.7% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 67.2% and in the third quarter of the last fiscal year, the figure rose more than twofold.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 52 cents versus a mean estimate of net income of 43 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 43 cents a share to 44 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.80 per to share to $1.86.

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

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