VMware, Inc. (VMW) up on Strong 2Q Results and Analysts Upgrades

Shares of Palo Alto, California, based VMware, Inc. (VMW) rose on Tuesday, against the backdrop of a mixed day in stocks overall. VMware's stock was up 9.05%, rising $5.66 per share, to close at $68.23, on volume of 9,141,916 shares. The company released strong results for its second quarter, and several analysts upgraded the stock, raising its target price.

Founded in 1998, VMware, Inc. provides the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware.
Its virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures. VMware has more than 500,000 customers and 75,000 partners. It's stock trades on the New York Stock Exchange.

On Monday, VMware released its second quarter results. The company reported Non-GAAP earnings of $414 million, or $0.97 per share for the quarter ended June 30. That represented a 5% increase in earnings over the $369 million, or $0.93 per share for the second quarter of 2015. It exceeded analysts forecasts of $0.95 per share. GAAP earnings were reported at $265 million, or $0.62 per diluted share, up 54% compared to $172 million, or $0.40 per diluted share, compared to GAAP earnings from a year earlier.

Revenues came in at $1.69 billion for the quarter, slightly above analysts expectations of $1.68 billion, and 6% higher than the $1.59 billion in non-GAAP revenues for the the second quarter of 2015. It also represented an 11% increase over GAAP revenues for the same period a year earlier.

On Tuesday, several analysts raised their target price for VMware's stock. Royal Bank of Canada raised the target price from $110 to $120 per share, while Raymond James raised its target price from $98 to $109 per share. On the lower end of the price scale, Maxim Group increased its price from $68 to $73 per share, while BMO Capital Markets increased the target from $55 to $70 per share. VMware's stock price is in the middle of its 52-week range, but is at its high year to date.

"Q2 was a continuation of the good start to the year we experienced in Q1, both for results and against our strategic goal of building momentum for our newer growth businesses and in the cloud," said VMware Chief Executive Officer, Pat Gelsinger. "Customers are turning to VMware to help them run, manage, secure and connect their applications across all clouds and all devices, with unparalleled connectivity, security and visibility."

Other VMW News

What Is VMware’s Value Proposition in the US Software Space?
VMware is second only to Microsoft by market capitalization in the virtualization space.

Vetr Top Raters Upgrade VMWare To 4.5 Stars
The tech company was upgraded to 4.5 stars from its previous 3 star rating. This rating coincides with sentiment from the Vetr community that is generally bullish on the stock.

Other Stocks in the News

EMC, Dell merger approved by shareholders in 98% vote
The newly formed company will be known as Dell Technologies and will absorb EMC's VMware, RSA Security and Virtustream.

Microsoft: Goal for Windows 10 will not be met
Company won't hit its target of one billion Windows 10 devices in use by June 2018, the company said Friday.
Published on Jul 20, 2016
By Kevin Mercadante

Copyrighted 2020. Content published with author's permission.

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