Cloud computing company VMware Inc. said Monday that its third-quarter net income rose 66 percent on growth in revenue from its virtualization software. Its shares rose after-hours as the results surpassed Wall Street’s expectations.
The company earned $261 million, or 60 cents per share, in the July-September quarter. That’s up from $157 million, or 36 cents per share, in the same period a year earlier.
Excluding costs related to paying employees in stock and options and other one-time items, per-share earnings rose to 84 cents from 70 cents.
Revenue rose 14 percent, to $1.29 billion from $1.13 billion.
Analysts, on average, were expecting adjusted earnings of 82 cents per share on revenue of $1.29 billion, according to a poll by FactSet.
VMware provides virtualization software to businesses. That allows one computer to function as multiple machines, saving energy and other costs.
Shares rose 7.7 percent to $89.03 in after-hours trading. Earlier, the stock had closed up $1.22, or 1.5 percent, at $82.65.