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 Nasdaq.com. 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.
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