VMware Shares Plummet on Weak Outlook
NEW YORK (TheStreet) -- VMware(VMW) beat analysts' revenue and earnings estimates. The virtualization trailblazer's shares plunged on weaker-than-expected guidance.
The software maker reported revenue of $1.29 billion, a 22% rise on the prior year's quarter and above Wall Street's estimate of $1.28 billion.
Excluding items, VMware earned 81 cents a share, up from 62 cents a share a year earlier. Analysts surveyed by Thomson Reuters were looking for earnings of 78 cents a share.
Virtualization software, which lets multiple operating systems run in the same computer, has become synonymous with VMware, fuelling the company's success. Investors, however, balked at VMware's outlook on Monday, pushing the company's shares down 14% to $84.88 in extended trading.
For the first quarter, VMware expects sales between $1.17 billion and $1.19 billion, below analysts' forecast of $1.25 billion.
VMware's also looking for fiscal 2013 revenue of $5.23 billion to $5.35 billion, well below Wall Street's prediction $5.42 billion.
The results also weighed on EMC(EMC) , which is VMware's majority owner. Shares of the storage giant, which reports its own fourth-quarter results Tuesday, fell 4.6% to $24.05 in extended trading.
-- Written by James Rogers in New York
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