This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

VMware Jumps on Solid Earnings Beat

NEW YORK ( TheStreet) -- Shares of VMware (VMW - Get Report) rose in late trades after the cloud computing company beat Wall Street's earnings expectations in its latest quarter and gave an upbeat revenue outlook for fiscal 2012.

Palo Alto, Calif.-based VMware reported non-GAAP earnings of $266 million, or 62 cents a share, in the December-ended period on revenue of $1.06 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 60 cents a share in the quarter on revenue of $1.05 billion.

The company said it expects revenue of $1.015 billion to $1.04 billion for its fiscal first quarter ending in March and revenue of $4.475 billion to $4.6 billion for the whole of fiscal 2012. Wall Street's current consensus estimates are for revenue of $1.02 billion and $4.51 billion in the respective periods.

The stock was last quoted at $90.09, up 4.8%, on volume of more than 600,000, according to Based on Monday's regular session close at $86, the shares were up 6% so far in 2012.

"The quarter's strong performance further signals that virtualization is the foundation for simplifying and automating IT," said Paul Maritz, the company's CEO, in a statement. "As customers continue to drive significant IT transformation, our task remains in providing solutions that go beyond cost reduction, yielding business and competitive value."

Wall Street was slightly bullish on VMware ahead of the report with 24 of the 40 analysts covering the stock at either strong buy (7) or buy (17), and the median 12-month price target sitting at $105.

Revenue from services outpaced the amount derived from licensing in the latest quarter, $546.5 million to $513.8 million. This was the ninth straight quarter that VMware topped the average analysts' estimate for its earnings per share.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
VMW $56.05 0.00%
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs