VMware Inc. on Tuesday forecast higher-than-expected adjusted profit for the fiscal fourth quarter, and global demand for cloud computing drove sales.
VMware said it expects fourth-quarter adjusted profit of $1.96 per share, which is well above analyst expectations of $1.89 per share. According to IBES data from Refinitiv, the company forecast fourth-quarter revenue of $3.51 billion, which is in line with analysts’ expectations of $3.55 billion.
VMware spun off Dell Technologies Inc earlier this year. The software company provides tools that help companies use their own data centers more efficiently and move their computing tasks back and forth between their own data centers and cloud computing companies like Amazon Web Services. . ,
Chief executive Raghu Raghuram told Reuters in an interview that the company believes there will be an increase in revenue from all regions of the world during the next fiscal year.
“IT spending is stagnating in the 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 profit were $3.19 billion and $1.72 per share, both above analyst estimates of $3.12 billion and $1.54 per share, according to Refinitiv data.