Several analysts gave guarded praise to VMware (VMW) – Get Report Wednesday after the cloud-computing company beat Wall Street’s third-quarter earnings expectations .
Shares of the Palo Alto, Calif.-based company, which is a subsidiary of Dell Technologies (DELL) – Get Report, were down 2.62% to $146.63 in pre-market trading.
VMware reported net income of $704 million, or $1.66 per share, up from $602 million, or $1.42 per share a year ago. FactSet’s consensus called for earnings of $1.44 per share.
The combination of subscription and Software as a Service (SaaS) and license revenue came to $1.32 billion, an increase of 10% from a year ago.
“The star of the show was the bottom-line performance as tighter expense controls led to a massive beat,” wrote Wedbush analyst Daniel Ives, who maintains an outperform rating with a $175 price target, “which we believe is sustainable for the