Stock Alert: Vmware Shares Down 6% Upbeat Earnings

(RTTNews) - Shares of VMware Inc. (VMW) are currently trading at $141.14, down $9.37 or 6.23%, with trading volume of 667K more versus an average volume of 1.13 million shares. The stock has been trading in the range of $86.00 - $172.34 for the past one year.

The company raised its financial forecast for fiscal 2021, while reporting upbeat profit for the third quarter.

FY21 Guidance

VMware increased its full-year fiscal 2021 total revenue guidance to $11.7 billion and raised GAAP earnings estimate to between $4.17 and $4.27 per share with non-GAAP earnings of $7.03 per share. Wall Street analysts estimate earnings of $6.66 per share on revenue of $11.62 billion for fiscal 2021.

Q3 Results

The company's Q3 GAAP net income was $434 million or $1.02 per share compared to $407 million or $0.96 per share for the third quarter of fiscal 2020. Non-GAAP net income was $704 million or $1.66 per share, up 17% compared to $602 million or $1.42 per share last year.

Analysts polled by Thomson Reuters expected earnings of $1.43 per share for the quarter. Analysts' estimate typically exclude certain special items.

Revenue for the third quarter was $2.86 billion, an increase of 8% from the third quarter of fiscal 2020. Subscription and SaaS revenue for the third quarter was $676 million, an increase of 44% year-over-year, representing 24% of total revenue.