VMware (NYSE: VMW ) reported earnings on July 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), VMware met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Gross margins grew, operating margins contracted, and net margins shrank.
VMware tallied revenue of $1.12 billion. The 27 analysts polled by S&P Capital IQ expected sales of $1.11 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $921.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The 36 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.44 for Q2 were 14% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 84.0%, 60 basis points better than the prior-year quarter. Operating margin was 18.9%, 140 basis points worse than the prior-year quarter. Net margin was 17.1%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $2.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,117 members out of 2,299 rating the stock outperform, and 182 members rating it underperform. Among 502 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 455 give VMware a green thumbs-up, and 47 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VMware is outperform, with an average price target of $120.12.
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