Home Industries VMware tops Wall Street estimates in the fiscal third quarter

VMware tops Wall Street estimates in the fiscal third quarter

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  • VMware tops Wall Street estimates in the fiscal third quarter.
  • The U.S. firm reports a 44% increase in subscription & SaaS revenue.
  • VMware raises its guidance for the full year on Tuesday.

VMware Inc. (NYSE: VMW) raised its guidance for the full year on Tuesday as its financial results topped Wall Street estimates in the fiscal third quarter.

Shares of VMware slipped more than 1% in extended trading on Tuesday. The U.S. company is now exchanging hands at £111.50 per share versus a significantly lower £71.83 per share in March due to COVID-19 disruptions.

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On a year to date basis, VMware is still roughly 5% down – a disappointment for people seeking to make money from their investment in its stock.

VMware’s Q3 financial results versus analysts’ estimates

VMware said that its net income in the third quarter printed at £325.29 million that translates to 76 pence per share. In the comparable quarter of last year, it had posted a lower £305.05 million of net income or 71.95 pence per share.

On an adjusted basis, the software company earned £1.24 per share in the recent quarter versus the year-ago figure of £1.12 per share. In terms of revenue, VMware recorded £2.14 billion in Q3 as compared to a lower £1.99 billion in the same quarter last year. In separate news from the U.S., HP Inc. also published its quarterly financial results on Tuesday.

According to FactSet, experts had forecast the company to register £2.11 billion of revenue in the third quarter. Their estimate for per-share earnings stood at £1.08. VMware reported subscription and SaaS revenue at £506.67 million in the recent quarter.

Chief Financial Officer Zane Rowe commented on the earnings report on Tuesday and said:

“Subscription and SaaS revenue increased 44% year over year in Q3 and surpassed license revenue for the first time.”

VMware raises its guidance for the full year on Tuesday

VMware raised its guidance for the full year on Tuesday and said that it now expects its adjusted per-share earnings to print at £5.27. Its estimate for annual revenue stands at £8.77 billion. In comparison, analysts are calling for £8.71 billion of revenue and £4.99 per share of earnings for the full year.

Earlier this year in September, VMware partnered with Nvidia Corp to make AI chips easier for business use.

VMware performed slightly upbeat in the stock market last year with an annual gain of close to 10%. At the time of writing, the Palo Alto-based company is valued at £47.39 billion and has a price to earnings ratio of 35.23.