Yahoo! Inc., VMware, Inc. Beat Earnings Estimates

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Yahoo! Inc., VMware, Inc. Beat Earnings Estimates
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Shares of Yahoo surged in after-hours trading, climbing as much as 7.31% to $51.50 per share, while VMware shares climbed as much as 2.58% to $82.69 per share

Yahoo and VMware both released their latest earnings report after closing bell tonight. Yahoo reported adjusted earnings of 30 cents per share on $1.18 billion in revenue excluding traffic acquisition costs Analysts had been expecting the search giant to post earnings of 29 cents per share on $1.2 billion in revenue for the fourth quarter.

VMware posted adjusted earnings of $1.08 per share on revenue of $1.7 billion for the fourth quarter, a new record. Analysts had been expecting the company to post earnings of $1.07 per share on $1.7 billion in revenue for the fourth quarter.

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Key metrics from Yahoo’s earnings report

Yahoo reported GAAP revenue of $1.253 billion for the fourth quarter and $4.618 billion for the full year. Revenue excluding traffic acquisition costs for the full year was $4.401 billion. Adjusted EBITDA was $256 million for the fourth quarter and $1.362 billion for the full year. Non-GAAP earnings for the full year were $1.57 per share. GAAP earnings for the fourth quarter were 17 cents and for the full year, $7.45 per share.

Yahoo reported GAAP search revenue of $467 million and search revenue excluding traffic acquisition costs of $462 million for the fourth quarter. GAAP display revenue was $532 million for the quarter. Excluding traffic acquisition costs, it was $464 million for the quarter.

In a related topic, Yahoo announced plans for a tax-free spinoff of its remaining holdings in Chinese online retailer Alibaba. The new publicly traded company will be called SpinCo.

Key metrics from VMware’s earnings report

VMware reported a 16% annual revenue growth rate, bringing it to $6.04 billion. For the fourth quarter, revenue increased 15%. License revenues rose 13% to $777 million. Net income fell 2% year over year to 75 cents per share, compared to 77 cents in the same quarter last year.

Net income for the full year was $2.04 per share, a 13% decline. Non-GAAP earnings for the year were $3.56 per share a 5% increase.

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