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VMWare Soars on Strong Q2 Results (VMW)

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VMWare Soars on Strong Q2 Results VMW

VMWare (NASDAQ: VMW) released its fiscal second-quarter earnings results after the closing bell on Tuesday.

The company reported earnings per share and revenue that came in ahead of Wall Street estimates. VMWare also lifted the top end of its full-year revenue outlook. In late trade, the stock had soared better than 11 percent to $79.45.

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Management Commentary

"The second quarter was a strong finish to a solid first half of 2013 for VMware," said Pat Gelsinger, chief executive officer, VMware. "We see a significant market opportunity in the second half of 2013 and beyond. VMware continues to succeed because we are uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As we help them bridge to this new world, we're empowering businesses to capture new levels of efficiency, control and agility."

Fiscal Q2 Financial Results

VMWare reported net income of $244 million or $0.57 per share, compared to $192 million or $0.44 per share, in last year's second-quarter.

On an adjusted basis, the company earned $343 million or $0.79 per share, versus $296 million or $0.68 per share, last year. This topped analysts' consensus EPS estimates of $0.77.

Revenue in the period was up 11 percent to $1.24 billion from $1.12 billion last year. This also came in ahead of consensus estimates of $1.23 billion.

Q3 and Full-Year Guidance

VMWare guided for third-quarter revenue of $1.27 billion to $1.30 billion, which is in-line with current consensus of $1.28 billion.

For fiscal 2013, the company lifted the top end of its guidance range. VMWare now expects sales of $5.12 billion to $5.26 billion compared to its previous guidance of $5.12 billion to $5.24 billion. Analysts currently expect revenue of $5.17 billion for the full-year.

 

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