VMware Quarterly Earnings on Deck

VMware (NYSE:VMW) will unveil its latest earnings today, October 17, 2011. 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 33 cents per share, a rise of 37.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 31 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 33 cents during the last month. For the year, analysts are projecting net income of $1.45 per share, a rise of 81.2% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 44 cents per share versus a mean estimate of 31 cents. Two quarters ago, it reported net income of 27 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 30.1% in revenue from the year-earlier quarter to $929 million.

Analyst Ratings: 16 out of 31 analysts surveyed (51.6%) have a buy rating on VMware.. This is below the mean analyst rating of 10 competitors, which average 70.7% buy ratings.

A Look Back: In the second quarter, profit rose more than twofold to $220.2 million (51 cents a share) from $74.5 million (18 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 36.7% to $921.2 million from $673.9 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 38.3%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 45.8% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 60.4% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

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 July 18, 2011 to October 14, 2011, the stock price had fallen $7.70 (-7.6%) from $100.78 to $93.08. 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. Shares are up $4.17 (+4.69%) year to date.

(Source: Xignite Financials)

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