VMware Second Quarter Earnings Sneak Peek

VMware (NYSE:VMW) will unveil its latest earnings on Tuesday, July 19, 2011. VMWare, Inc. 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 net income of 31 cents per share, a rise of 55% 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 29 cents. Between one and three months ago, the average estimate moved up, but has dropped from 32 cents during the last month. For the year, analysts are projecting profit of $1.34 per share, a rise of 67.5% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 27 cents per share versus a mean estimate of profit of 27 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $873.3 million in revenue this quarter, a rise of 29.6% from the year ago quarter. Analysts are forecasting total revenue of $3.63 billion for the year, a rise of 26.9% from last year’s revenue of $2.86 billion.

Analyst Ratings: Analysts seem relatively indifferent about VMware with 20 of 32 analysts surveyed maintaining a hold rating.

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 41.1%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 47.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 60.4% while it rose more than twofold in the fourth quarter of the last fiscal year and more than twofold in the third 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 April 15, 2011 to July 13, 2011, the stock price had risen $14.29 (16.6%) from $85.99 to $100.28. The stock price saw one of its best stretches over the last year between March 11, 2011, and March 18, 2011, when shares rose for six-straight days, rising 11% (+$8.21) over that span. It saw one of its worst periods between November 26, 2010, and December 6, 2010, when shares fell for seven-straight days, falling 5.7% (-$4.93) over that span. Shares are up $11.37 (+12.8%) year to date.

(Source: Xignite Financials)

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