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Thursday, August 22, 2019

VMware (VMW) reported earnings on Thur 22 Aug 2019 (a/h)

** charts before earnings **


** charts after earnings **

VMware beats by $0.05, reports revs in-line, guides on the call; co also announces it will acquire Pivotal Software (PVTL) and Carbon Black (CBLK)

  • Reports Q2 (Jul) earnings of $1.60 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $1.55; revenues rose 12.2% year/year to $2.44 bln vs the $2.43 bln S&P Capital IQ Consensus.
    • License revenue for Q2 rose 12% yr/yr to $1.01 bln.
  • Co also announces it will acquire Pivotal Software (PVTL) and Carbon Black (CBLK).
  • VMware will acquire Pivotal for a blended price per share of $11.71, comprised of $15 per share in cash to Pivotal Class A stockholders, and VMware's Class B shares exchanged for Pivotal Class B shares held by Dell Technologies at an exchange ratio of 0.0550 shares of VMware Class B common Stock for each share of Pivotal Class B common stock. The transaction has an enterprise value of $2.7 billion.
  • VMware will also acquire Carbon Black (CBLK) through a cash tender offer for $26 per share, representing an enterprise value of $2.1 bln.
  • "These companies address key strategic IT priorities - building apps with a modern approach and protecting enterprise workloads and clients. With Pivotal, VMware will be able to deliver an integrated modern apps portfolio combining Pivotal's next-generation developer platform and VMware's Kubernetes portfolio. With Carbon Black, VMware will be able to provide a next generation security cloud with Carbon Black's protection suite and VMware's intrinsic security assets."
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