|The second quarter press release: sec.gov|
VMware shares slide despite strong Q2 results
The company reported Q2 revenue of $2.17 billion, uppercent year over year.
By Natalie Gagliordi for Between the Lines |
August 23, 2018 -- 20:32 GMT (13:32 PDT)
VMware released second quarter financial results after the bell on Thursday, beating market estimates. The virtualization giant reported a net income of $644 million, or $1.56 per share. The income includes a gain of $231 million from VMware's investment in Pivotal Software, the company said.
Non-GAAP earnings were $1.54 per share on a revenue of $2.17 billion, up 13 percent year over year. Wall Street was looking for earnings of $1.49 per share with revenue of $2.14 billion.
VMware's license revenue came to $900 million, an increase of 19 percent year over year. Services revenue was $1.2 billion.
In statement, CFO Zane Rowe said the quarter was driven by "strong operational performance across the business. Product license bookings grew double-digits year-over-year in all major product categories."
In terms of guidance, analysts expect VMware to report Q3 earnings of $1.49 per share on revenue of $2.16 billion. Shares of VMware were down almost four percent after hours.