Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of virtualization specialist VMware (NYSE: VMW ) have skyrocketed today by as much as 18% after the company reported earnings last night.
So what: Revenue in the second quarter totaled $1.24 billion, which translated into adjusted earnings per share of $0.79. Both figures topped the market's expectations of $1.23 billion in sales and $0.77 per share in adjusted profit. Investors were impressed with VMware's guidance.
Now what: Third-quarter sales are expected to be in the range of $1.27 billion to $1.3 billion, and license revenues should be $535 million to $555 million. Full-year revenue should be $5.12 billion to $5.26 billion. That outlook helped dispel fears that VMware's business was maturing and growth was slowing, as pessimism had been growing recently. Nomura Securities and Raymond James both upgraded VMware to "buy."
Interested in more info on VMware? Add it to your watchlist by clicking here.
It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.