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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends VMware. The Motley Fool owns shares of VMware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.