VMware’s virtualization software is widely used in corporate data centers. This increase comes after the company released its 2Q earnings. The business had revenue of $1.69 billion for the quarter, compared to analysts’ expectations of $1.68 billion.
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Operating cash flows for the second quarter reached Dollars 577 million. Non-GAAP net income for the quarter was $414 million, or $0.97 per diluted share, up 5% per diluted share compared to $396 million, or $0.93 per diluted share, for q2 of 2015.
Earlier this year, a management shakeup that saw VMware’s COO resign and the announcement of significant layoffs raised questions about the company’s strategy.
Leading analyst firm IDC named VMware as the market share leader in both the worldwide cloud systems management and the datacenter automation software marketsbased on 2015 revenues.
VMware reported adjusted earnings for the second quarter of 97 cents per share, up from analysts’ estimates of 95 cents per share after yesterday’s closing bell.
In addition to beating analyst estimates, VMware raised its guidance for the full year. There are now 427,690,350 shares in issue with the average daily volume traded being 2,064,960.
VMware (VMW) stock jumped Tuesday as a beat-and-raise quarter eased worries over management changes, amid parent EMC’s (EMC) sale to privately held Dell. BMO’s price target on the stock was also lifted from $55 to $70. VMware aims to stay a leader in corporate computing as companies move to cloud-based technology – sharing servers and data storage in remote data centers. Its six months performance indicated a bullish movement while its yearly performance reflected a negative trend of -25.99%. The stock has a 50-day moving average price of $60.48 and a 200 day moving average price of $54.17. The company has a market capitalization of $29.03 billion and a PE ratio of 30.115. The fund owned 1,663,142 shares of the virtualization software provider’s stock after buying an additional 49,469 shares during the period. The company has Relative Strength Index (RSI 14) of 62.81 along with Average True Range (ATR 14) of 1.32. Additionally, Royce Value Trust Inc (NYSE:RVT), Inc has an RSI of 66.61 and beta of 1.29.
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VMware Inc. (NYSE: VMW) reported its second-quarter financial results after the markets closed on Monday, and as a result was one of the top performers in the market on Tuesday. (NYSE:VMW) by 3.1% during the first quarter, according to its most recent disclosure with the SEC. The company has a Return on Assets of 6.30%. Royal Bank Of Canada upped their target price on VMware from $110.00 to $120.00 and gave the company an “outperform” rating in a research report on Monday, March 28th. The company now has a Return on Equity of 12.40% and Return on Investment of 10.40%.
