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VMware shares are trading lower in late trading even though its latest financial results—its first since the departure of former CEO Pat Gelsinger —turned out better than expected.
For its fiscal fourth quarter, ended Jan. 31, the enterprise software company (ticker: VMW) reported revenue of $3.3 billion, up 7% from a year earlier, and slightly above the consensus call on Wall Street for $3.23 billion. The company said subscription and software-as-a-service revenue was $707 million, up 27%.
Profits on an adjusted basis were $936 million or $2.21 a share, ahead of the Street consensus forecast of $2.05. Under generally accepted accounting principles, the company earned $791 million, or $1.87 a share.
For the full year, VMware had revenue of $11.8 billion, up 9%, with profits of $7.02 a share on a non-GAAP basis. Earnings were $4.86 a share under GAAP.
Former CEO Pat Gelsinger, long an Intel (INTC) employee, has taken the top job at the semiconductor company.
“We are pleased with our fourth quarter financial performance and it was a good finish to the fiscal year,” interim CEO Zane Rowe said in a statement. “Our results reinforce that customers continue to choose VMware technologies and solutions to drive their digital foundation for today and for the future. “
He said the company continues to build up its subscription and software-as-a-services business, as well as continuing to offer new products.
For the first quarter, the company projects revenue of $2.9 billion, up 6%, and about in line with the Street’s expectation for $2.93 billion. Non-GAAP profits are expected to be $1.49 a share, a penny ahead of the Wall Street consensus call..
For fiscal 2022, VMware is projecting revenue of $12.7 billion, up 8%, and right in line with Street estimates. The company sees full-year non-GAAP profits of $6.68 a share, a little shy of the previous Street consensus forecast of $6.95 a share.
In late trading Thursday, VMware shares were down 2.5%, to $143.53.
Write to Eric J. Savitz at [email protected]
