VMware Inc. (VMW - Free Report) just released it latest quarterly results, posting earnings of $1.26 per share and revenues of $2.01 billion.
Currently, VMW is a #3 (Hold) on the Zacks Rank, but that could change based on today’s results. Shares of the software company have gained about 14.7% over the past month and were down a slight 0.39% during regular trading hours today.
The stock is currently up around 2.5% to $141.00 per share in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company reported earnings of $1.26 per share, surpassing the Zacks Consensus Estimate of $1.14 per share. Non-GAAP net income was $516 million, up 18%; GAAP net income was $942 million, which included a gain of $781 million from Pivotal Software’s IPO.
Beat revenue estimates. The company saw revenue figures of $2.01 billion, topping our consensus estimate of $1.95 billion and growing 14% year-over-year.
License revenues came in at $774 million, surging 21% year-over-year.
The company also noted that operating cash flows were $1.1 billion, and free cash flows for the quarter were $1.03 billion
“Q1 results reflect the success we have with our broad and increasingly integrated product and services portfolio,” said Zane Rowe, executive vice president and chief financial officer, VMware. “The strong start to fiscal 2019 has us well positioned to execute on our strategy.”
Here’s a graph that looks at VMware’s recent earnings performance:
VMware provides virtualization solutions from the desktop to the data center. Their solutions enable organizations to aggregate multiple servers, storage infrastructure and networks together into shared pools of capacity that can be allocated dynamically, securely and reliably to applications as needed, increasing hardware utilization and reducing spending. They derive a significant majority of their revenues from their indirect sales channel that include distributors, resellers, x86 system vendors and systems integrators.
Check back later for our full analysis on VMW’s earnings report!
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