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VMWare Names New CEO, Sees Revenue Beating Consensus

VMware appointed Rangarajan (Raghu) Raghuram, an 18-year veteran at the company, as chief executive, effective June 1.
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Cloud software stalwart VMware  (VMW)  named a new chief executive Wednesday and announced preliminary revenue for its latest quarter that beat expectations.

VMware appointed Rangarajan (Raghu) Raghuram, an 18-year veteran at VMWare, as its new CEO, effective June 1. He’s currently chief operating officer of products and cloud services at the company. Raghuram replaces Pat Gelsinger, who left VMWare to become CEO at Intel  (INTC) .

The stock finished Wednesday down $4.49, or 2.8%, at $156.48 amid a broad market selloff sparked by inflation fears. It has gained 13% in the past three months amid investor enthusiasm over its financial performance. That tops the 5% gain of the Russell 1000, of which it’s a member.

“I am thrilled to have Raghu step into the role of CEO at VMware,” said Michael Dell, chairman of VMware’s Board of Directors.

Last month, his Dell Technologies  (DELL)  company announced it’s spinning off its 81% stake in VMware in a deal that will create two standalone companies and result in a special dividend payment to Dell of between $9.3 billion and $9.7 billion.

On Wednesday, VMware also appointed Sumit Dhawan as president. Dhawan currently serves as chief customer officer for the company.

As for the preliminary earnings, VMWare projects revenue of $2.99 billion for the fiscal 2022 first quarter ended April 30, up 9.5% from the year-ago quarter. That would top the FactSet analyst consensus of $2.91 billion.

VMWare anticipates profit per share of $1.01 for the latest quarter, and adjusted earnings per share of $1.76. VMWare plans to release its earnings report May 27.