VMware (NYSE: VMW ) is expected to report Q4 earnings on Jan. 28. Here's what Wall Street wants to see:
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.
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