VMware shares rise on better-than-expected earnings, share buyback program
Shares of VMware Inc. gained in Tuesday's extended session after the computer-server software company turned in better-than-expected earnings and announced a sizable stock buyback program. VMware reported its first-quarter earnings fell to $161 million, or 38 cents a share, from $196 million, or 45 cents a share, a year earlier. On an adjusted basis, VMware would have earned 86 cents a share. Revenue rose 5% to $1.59 billion. Analysts surveyed by FactSet had forecast the Silicon Valley company to earn 84 cents a share on revenue of $1.58 billion. The company also plans to buy back up to $1.2 billion in Class A common shares by the end of the year. Shares gained 3.5% in after-hours trading.
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