VMware 2Q Results: Postgame Scorecard

VMware (NYSE:VMW) saw its profit fall in the most recent quarter.

Earnings and Revenue The company's revenues met Wall Street's expectations, though the company's EPS fell short of predictions. The company reported EPS of 44 cents a share versus the 48 cents a share estimate and revenues of $1.12 billion versus the $1.12 billion estimate. The estimates of 14 analysts ranged from profit of 43 cents to profit of 52 cents.

The company's net income for the quarter was $191.7 million. According to the reported number, this is down 12.9% from last year's levels. Revenue climbed 21.9% from $921.2 million in the same period last year.

Company Fundamental Trends With last quarter's falling profit, The company ends a run of at least four consecutive quarters of year-over-year profit increases. The company has averaged revenue growth of 28.5% over the past five quarters.

History Against Expectations The company missed forecasts after topping estimates in the previous two quarters. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by 9 cents.

Official Comment: "VMware has led the server virtualization revolution, and we have the opportunity to do the same in datacenter and cloud networking," said Paul Maritz, chief executive officer, VMware. "The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in software-defined networking."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.