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.
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."
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