VMWare Authorizes $1.2B Share Repurchase Plan; Shares Jump

VMware, Inc. VMW released its Q1 earnings report this afternoon, and shares of the computer-server company jumped after it reported better than expected earnings, along with a sizable stock buyback program.

The company posted results that exceeded analysts’ expectations.

VMWare reported first-quarter earnings per share of $0.86 on revenue of $1.59 billion. Analysts had been expecting the company to post revenues of $1.58 billion and EPS of $0.84.

As for specifics on the share buyback program, the company’s board of directors authorized $1.2 billion this year. CFO Zane Rowe commented, “Our intent to repurchase $1.2 billion of stock this year underscores the confidence we have in the business and reinforces our capital allocation strategy, which includes returning capital to shareholders.”

VMware’s stock is up significantly in Tuesday's after-hours session, up almost 10 percent above $56.50. That's almost on par with the level shares closed 2015 near.