VMware stock hits new low on outlook

Shares of VMware Inc. hit a new low Wednesday, a day after the company reported second quarter earnings growth but a weaker outlook than investors had hoped.

Palo Alto-based VMware (NYSE:VMW) dropped to $32.31 during the day, the lowest its shares have been since the company's IPO last summer. VMware closed the day at $37.

On Tuesday VMware said it expects third quarter sales between $462 million and $468 million, while analysts had predicted revenue of almost $497 million for the quarter.

Content Continues Below

The company also reported second quarter net income of $52 million, or 13 cents a share, up from $34 million, or 10 cents a share in the same period last year.