VMW beats the consensus estimates; the shares are trading about $6 higher in AH.
InPlay 4:09PM VMware beats by $0.04, beats on revs; guides Q3 revs above consensus; guides FY11 revs above consensus (VMW) 106.02 +5.24 : Reports Q2 (Jun) earnings of $0.51 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.47; revenues rose 36.8% year/year to $921 mln vs the $873.5 mln consensus. Co issues upside revenue guidance for Q3, sees Q3 revs of $915-940 mln vs. $898.75 mln Capital IQ Consensus Estimate. The third quarter non-GAAP operating margin is expected to decline sequentially by 260 to 360 basis points. Co issues upside guidance for FY11, sees FY11 revs of $3.65-3.75 bln vs. $3.63 bln Capital IQ Consensus Estimate.
VMware Q3 Tops Estimates; But Shares Sell Off After Hours
Eric Savitz Forbes 10/17/2011 @4:38PM
Virtualization software provider VMware this afternoon posted Q3 revenue of $942 million, with non-GAAP profits of 53 cents a share, topping the Street consensus at $929.4 million and 50 cents. Revenue was up 32% from a year ago, or 30% in constant currency.
“VMware’s third quarter results were driven by growth across all products,”CFO Mark Peek said in a statement. “Demand was especially strong in the Asia Pacific markets and we also experienced the seasonal impact of sales to the U.S. Federal Government.”
For the fourth quarter, the company sees revenue of $1.03 billion to $1.06 billion; the Street has been expecting $1.03 billion.
In late trading, VMW is down $4.03, or 4.5%, to $85.49.
Goldman says "Conviction Buy" on VMW with $125 target yet Citi says "Sell"!! Who is right and who is wrong. Both cannot be correct.
Does it matter that VMW has competition or does the competition merely serve to validate the space (ie Microsoft is "reviving" a cancelled project to compete with VMW).
I am long and think this is a true enabling technology for so much yet no one sees what they are doing except at the highest order. Great proxy for all the cloud computing and smartphone apps with 1-2Gb of data.
VMW may be the best play on the cloud and if EMC did not have a controlling interest if would be a prime candidate for acquisition. While I personally am comfortable with the current valuation, Peter's comments on Goldman may be spot on.
The virtualization software company posted Q4 revenue of $1.06 billion, up 27% from a year ago, or 26% in constant currency, edging the Street consensus at $1.05 billion. Non-GAAP profits of 62 cents likewise topped the Street consensus at 60 cents.
For Q1, the company sees revenue of $1.015 billion to $1.04 billion; the Street has been forecasting $1.02 billion. For all of 2012, VMware sees revenue of $4.475 billion to $4.6 billion, up 20%-23%; previous consensus was $4.51 billion.
VMW in late trading is up $4.13, or 4.8%, to $90.13.