VMware Inc. (VMW) shares fell nearly 6 percent in the last trading session despite reporting better-than-expected financial results for the third quarter with upbeat full-year guidance. The Palo Alto, California-based software company reported earnings of $434 million, or $1.02 per share for the quarter, as compared to $407 million, or 96 cents per share in the same period last year.
On an adjusted basis, earnings rose to $1.66 per share, versus $1.49 per share in the year-ago quarter. Revenue came in at $2.86 billion, as compared to $2.66 billion last year. Analysts on average were expecting VMware to report a profit of $1.44 per share on sales of $2.81 billion.
Speaking on the results, CEO Pat Gelsinger said in a statement “as customers navigate through these unprecedented times, our focus remains on delivering the digital foundation for an unpredictable world. We continue to shape the future in areas that are top priority for every business–from app development to multi-cloud to security and digital workspaces.”
The company said that its subscription and SaaS revenue in the quarter rose 44 percent on a year-over-year basis.
VMware also revised its financial outlook for the fiscal year 2021. It now expects an adjusted profit of around $7.03 per share and revenue of approx. $11.7 billion for the full year. On the other hand, analysts on average had estimated earnings of $6.66 per share on revenue of $11.62 billion for the same period.
VMware (NYSE: VMW) shares opened at $145.89 on Wednesday, and after hitting a high price of $146.39 and a low price of $139.67, finally ended the day at $141.69. VMW stock price stayed almost flat in the current fiscal year. The stock has slipped nearly 6.5 percent on a year-to-date basis.
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