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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.