VMware Inc.’s stock declined in the extended session Thursday after the enterprise cloud company’s outlook for the current quarter overshadowed its earnings beat.
shares fell 5% after hours, following a less than 0.1% gain in the regular session to close at $118.12.
The company reported fourth-quarter net income of $586 million, or $1.39 a share, compared with $791 million, or $1.87 a share, in the year-ago period. Adjusted earnings, which excludes stock-based compensation expenses and other items, were $2.02 a share, compared with $2.21 a share in the year-ago period. Analysts surveyed by FactSet had forecast earnings of $1.98 a share.
Meanwhile, VMware’s revenue rose to $3.53 billion from $3.29 billion in the year-ago quarter, while the Street expected revenue of $3.52 billion.
The company said it subscription and Software-as-a-Service, or SaaS, sales rose 23% to $868 million from a year ago, while analysts expected $860.2 million.
For the first quarter, the company expects earnings of $1.56 a share on revenue of about $3.19 billion with SaaS sales of $910 million, while analysts had forecast $1.63 a share on revenue of $3.23 billion and SaaS sales of $920.4 million.
For the year, VMware said expects earnings of $6.97 a share on revenue of about $13.75 billion with SaaS sales of $4.04 billion, while analysts had forecast $7.29 a share on revenue of $13.82 billion and SaaS sales of $4.01 billion.
Over the past 12 months, VMware shares have declined 19.5%, compared with a 9.3% gain in the S&P 500 index
and a 0.9% decline in the tech-heavy Nasdaq Composite Index