VMware Inc. (NYSE: VMW) is showing that the limitless growth of virtualization either does have some limits or that the recession put a real cap on its growth. The virtualization leader posted $0.20 in non-GAAP EPS on revenues of $465 million. Thomson Reuters had consensus estimates as $0.19 EPS and under $453 million in revenues. The company’s net income fell 38% after items to $33 million, or $0.08 EPS, on higher operating expenses.
If you look at the company’s guidance, VMware is stating that it is getting some better visibility: “… we are beginning to get somewhat better visibility into our business and expect third quarter revenues to be between $465 and $480 million and revenues for the full year 2009 to grow one to three percent compared to 2008.” We have estimates pegged at $471.1 million. The fiscal guidance implies a $1.8988 to $1.936 billion range. Thomson Reuters is at $1.91 billion, so that is in-line guidance.
Shares closed up about 0.9% to $31.25 in regular trading on the New York Stock Exchange before VMware released its results. Simply on the “visibility” and the slight beat, we have shares trading up 9% at $34.00 in the after-hours session.
JON C. OGG
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.