VMware (VMW) NewsBite - VMware Revenue Forecast Disappoints

Posted on Wednesday, July 23, 2008 11:01 AM

VMware Inc. (VMW) opened at 32.63. So far today, the stock has hit a low of 32.31 and a high of 32.93. VMW is now trading at 32.74, down 5.23 (-16.03%). The stock hit its 52 week high of 125.25 in October and set its 52 week low of 32.31 today. VMW has been falling since November of last year. VMware announced yesterday evening its second-quarter profit grew to $52.3 million, helped by growing international sales. The company posted earnings of 13 cents per share on sales of $456.2 million, while analysts had expected a profit of 23 cents per share on slightly higher revenue of $458.6 million. VMware also issued a revenue outlook that fell far short of expectations. Technical indicators for the stock are bearish and steady. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $45 range. VMW stock could rise up to 37.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]