The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict VMware's revenues will increase 20.5% and EPS will expand 25.8%.
The average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.78.
Last quarter, VMware reported revenue of $1.13 billion. GAAP reported sales were 20% higher than the prior-year quarter's $941.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.70. GAAP EPS of $0.36 for Q3 were 12% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 84.2%, 40 basis points better than the prior-year quarter. Operating margin was 16.8%, 240 basis points worse than the prior-year quarter. Net margin was 13.8%, 500 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $4.59 billion. The average EPS estimate is $2.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,131 members out of 2,310 rating the stock outperform, and 179 members rating it underperform. Among 521 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 483 give VMware a green thumbs-up, and 38 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 $111.53.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not VMware makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add VMware to My Watchlist.