VMware Fourth Quarter Earnings Sneak Peek

VMware (NYSE:VMW) will unveil its latest earnings on Monday, January 23, 2012. VMWare is a provider of virtual infrastructure software solutions from the desktop to the data center. It works with more than 1,300 technology partners, including leading server, microprocessor, storage, networking and software vendors.

VMware Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 43 cents per share, a rise of 79.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.51 per share, a rise of 88.8% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 13 cents, coming in at profit of 31 cents per share against a mean estimate of net income of 33 cents. The company topped expectations in the second quarter.

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Wall St. Revenue Expectations: On average, analysts predict $1.05 billion in revenue this quarter, a rise of 25.6% from the year ago quarter. Analysts are forecasting total revenue of $3.76 billion for the year, a rise of 31.5% from last year’s revenue of $2.86 billion.

Analyst Ratings: 18 out of 31 analysts surveyed (58.1%) have a buy rating on VMware.. This is below the mean analyst rating of 10 competitors, which average 69.4% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the third quarter, profit rose more than twofold to $177.5 million (41 cents a share) from $84.6 million (20 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 31.9% to $941.9 million from $714.2 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 34.8%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 37.4% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose more than twofold in the second quarter and 60.4% in the first quarter.

Competitors to Watch: Citrix Systems, Inc. (NASDAQ:CTXS), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), EMC Corporation (NYSE:EMC), Symantec Corporation (NASDAQ:SYMC), Oracle Corporation (NASDAQ:ORCL), Quest Software, Inc. (NASDAQ:QSFT), Hewlett-Packard Company (NYSE:HPQ), Google Inc. (NASDAQ:GOOG), and LogMeIn, Inc. (NASDAQ:LOGM).

Stock Price Performance: During November 16, 2011 to January 17, 2012, the stock price had fallen $17.11 (-16.9%) from $101.11 to $84. The stock price saw one of its best stretches over the last year between April 5, 2011 and April 13, 2011 when shares rose for seven-straight days, rising 11.1% (+$8.75) over that span. It saw one of its worst periods between September 26, 2011 and October 3, 2011 when shares fell for six-straight days, falling 10.5% (-$9.23) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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