NEW YORK (TheStreet) -- VMware (VMW) - Get Report stock is down by 9.23% to $44.70 in mid-afternoon trading on Wednesday, after the company reported its 2015 fourth quarter earnings results and announced it would cut 800 jobs.
Though the cloud software company reported better-than-expected earnings, revenue of $1.87 billion was below analysts' estimates for revenue of $1.85 billion. VMware announced it was cutting 800 jobs to focus on "growth products," which will require the company to pay a charge between $55 million and $65 million.
Additionally, CFO Jonathan Chadwick will resign and be replaced by EMC Corp. (EMC) CFO Zane Rowe, the company said on Tuesday.
VMWare investors are concerned that Dell's acquisition of EMC, VMWare's parent organization, will result in a sell-off of VMWare stock, the Wall Street Journal reports.
"The hangover of this acquisition is paralyzing VMware in the short term," Brent Thill, an analyst with UBS, told the Journal.
So far today, 6.71 million shares of VMWare have traded, versus its 30-day average of 1.97 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: VMW