VMware (NYSE:VMW) Guidance Misses Analysts Forecasts on Weak Demand

VMware, Inc (NYSE:VMW) estimate sales that failed to meet forecasts amid cutbacks from corporate clients. Shares of the biggest manufacturer of software that allows computers to run multiple operating systems plunged following the news.

The Palo Alto, California-based VMware reported in a statement on Monday that revenue in the fiscal first-quarter will be $1.17 billion to $1.19 billion, lowers than the Bloomberg gathered analysts’ median forecast of $1.25 billion.

The corporation reported in the filing that it will lower 900 jobs, depart from few lines of business and consolidate plants current year, resulting in charges of $90 million to $110 million.

The company reported profit without few items was 81 cents per share in the fiscal fourth-quarter, beating the median forecast of 78 cents per share by Bloomberg survey.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Citrix Systems, Inc. (NASDAQ:CTXS) fell -0.20% to settle at $71.41, International Business Machines Corp. (NYSE:IBM) moved down -0.02% to end at $204.93 while Hewlett-Packard Company (NYSE:HPQ) jumped +0.18% to finish at $17.02 on Monday.

VMware, Inc. (NYSE:VMW) last session’s volume of 5.39 million shares was surprisingly higher than its average volume of 1.68 million shares. The stock after opening at $97.76 hit high price of $99.10 and then closed at $98.32 by scoring -0.69%.

The liquidity measure in recent quarter results of the company was recorded 2.15 as current ratio and on the other side the debt to equity ratio was 0.08 and long-term debt to equity ratio remained at 0.08. The Company had total cash of $4.39 million at hand and a book value per share as $12.99 in the most recent quarter.

The stock’s price volatility was 2.31% for a week and 2.54% for a month as well as price volatility’s Average True Range for 14 days was 2.46 and its beta remained at 1.38.

VMW generated revenue of $4.37 billion in the previous twelve months and earned $740.36 million. The Company showed a positive 16.93% in the net profit margin as well as in its operating margin which remained at 19.06%. Company’s annual sales growth for the past five years was 39.86%.

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