VMware, Inc. Shares Slide After Hours on Solid, Not Fantastic Results
Shares of VMware are trading lower in after-hours action, following the virtual computing veteran's fourth-quarter earnings report.
Fourth-quarter sales increased 15% year over year, landing at $1.48 billion. Adjusted earnings jumped 25% higher, stopping at $1.01 per diluted share. The figures were in line with analyst expectations.
CEO Pat Gelsinger sees a strong 2013 as evidence that VMware's customers are getting good value from its products and services. "In every region of the world, customers are making a long-term bet on VMware to help them transform their businesses for the mobile-cloud world," he said in a press statement.
Updated guidance for the first quarter and full year of fiscal 2014 were also in line with current analyst views.
VMware shares traded down 2.6% at press time. Corporate parent EMC saw shares sliding 1.5% lower as well, as investors prepared for VMware's impact on tomorrow's EMC report. Both stocks had been strong performers in the three months leading up to these reports, which is why in-line results can't support the shares at recent prices.
The article VMware, Inc. Shares Slide After Hours on Solid, Not Fantastic Results originally appeared on Fool.com.
Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends VMware and owns shares of EMC and VMware. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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