VMware forecast profits above expectations

VMware forecast fiscal fourth quarter adjusted profits above expectations and the global demand for cloud computing pushed up sales.

The vendor said that it expects fourth quarter adjusted profits of US$1.96 per share, above analyst expectations of US$1.89 per share.

The company predicted fourth-quarter revenue of US$3.51 billion (A$4.86 billion), in line with analyst expectations of US$3.55 billion (A$4.91 billion), according to IBES data from Refinitiv.

VMware spun out of Dell Technologies earlier this year.

The software company provides tools that help companies use their own data centres more efficiently and move their computing work back and forth between their own data centers and those of cloud computing companies like Amazon Web Services.

Chief executive Raghu Raghuram told Reuters in an interview that the company believes it will see revenue growth from all regions of the world over the course of the next fiscal year.

“IT spending continues stabilize going into next year,” Raghuram said. “Our view is that customers will continue to accelerate their application modernization.”

For the fiscal third quarter ended October 29, VMware said sales and adjusted profits were US$3.19 billion and US$1.72 per share, both above analyst estimates US$3.12 billion and US$1.54 per share, according to Refinitiv data.