VMware Inc.’s profit declined less than expected in the second quarter, as the software company awaits approval for an acquisition by chip maker Broadcom Inc.
VMware
VMW,
on Thursday reported second-quarter earnings of $347 million, or 82 cents a share, on revenue of $3.34 billion, up from $3.14 billion a year ago. After adjusting for stock-based compensation, taxes and other effects, the software company reported earnings of $1.64 a share, down from $1.75 a share last year.
Analysts on average expected adjusted earnings of $1.57 a share on sales of $3.3 billion, according to FactSet. Shares bounced between slight gains and losses in after-hours trading immediately following the release of the results, after closing with a 2.6% increase at $122.01.
Broadcom
AVGO,
announced its intention to acquire VMware in late May for $61 billion in cash and stock in a big addition to its software holdings, which also include Symantec’s enterprise security business and CA Inc. VMware was allowed to shop for better bids in the deal, but the “go-shop” period ended after 40 days and the deal is now expected to go through sometime in the next year and value VMware stock at roughly $142.50 a share.
VMware executives are not expected to hold a conference call related to earnings results, a common practice as a company awaits an acquisition to go through.
VMware stock has gained more than 5% this year, as the S&P 500 index
SPX,
has declined 13.2%.
Source: https://www.marketwatch.com/story/vmware-beats-on-earnings-as-it-awaits-broadcom-acquisition-approval-11661458835?siteid=yhoof2&yptr=yahoo