VMware satisfies earnings expectations for Q3 riddled with spinoff speculation

UPDATED: VMware's CFO credited the uptick to the virtualization company's "newer businesses," which he defined as mobility, networking, storage, and hybrid cloud.
Written by Rachel King, Contributor

Amid building speculation about a split from parent company EMC, VMware published third quarter earnings after the bell on Tuesday.

However, results didn't lend themselves as credence to worrywarts.

The virtualization company reported a net income of $194 million, or 45 cents per share (statement).

Non-GAAP earnings were 87 cents per share on a revenue of $1.52 billion, up 18 percent year-over-year.

Wall Street was expecting earnings of 83 cents per share on revenue of $1.5 billion.

In the report, CFO Jonathan Chadwick credited the annual uptick to VMware's "newer businesses," which he defined as mobility, networking, storage, and hybrid cloud.

CEO Pat Gelsinger insisted in prepared remarks that CIOs and IT departments are placing a "a long-term bet on VMware to help them transform their businesses and embrace a new model for IT.

"Customers are looking to VMware for technology choices that liberate them from the constraints of hardware, and which offer a new model for security, optimized for a world of millions of applications," Gelsinger continued.

For the current quarter, Wall Street expects VMware to return with earnings of $1.07 per share on top of $1.71 billion in revenue.

VMware is expected to provide guidance during its quarterly shareholders call 2PM PT/5PM ET on Tuesday, October 21.

UPDATED: VMware provided a Q4 revenue guidance range of $1.67 billion to $1.71 billion.

Parent company EMC will follow up with its own third quarter earnings report before the bell on Wednesday, October 22.

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