VMware Inc. Earnings Cheat Sheet: Earnings Higher Than Expected

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

Results: Net income for VMware Inc. rose to $177.5 million (41 cents per share) vs. $84.6 million (20 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 31.9% to $941.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VMW reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. Analysts were expecting revenue of $929 million.

Quoting Management: “I’m pleased with another solid quarter for VMware illustrated by progress with new products, growth across our portfolio and a growing community. We are becoming a significant partner to businesses moving to the cloud,” said Paul Maritz, chief executive officer.

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 37%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 45.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose 60.4%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 44 cents versus a mean estimate of net income of 31 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 39 cents a share to 40 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $1.33 a share to $1.45 over the last ninety days.

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).

Stock Performance: Shares of VMW were down 3.7% from the previous close.

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(Source: Xignite Financials)