The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict VMware's revenues will grow 9.7% and EPS will grow 13.2%.
The average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $0.77.
Last quarter, VMware logged revenue of $1.19 billion. GAAP reported sales were 13% higher than the prior-year quarter's $1.06 billion.
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 $0.74. GAAP EPS of $0.40 for Q1 were 9.1% lower than the prior-year quarter's $0.44 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 84.7%, 90 basis points better than the prior-year quarter. Operating margin was 18.7%, 190 basis points worse than the prior-year quarter. Net margin was 14.6%, 350 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $5.17 billion. The average EPS estimate is $3.25.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,158 members out of 2,338 rating the stock outperform, and 180 members rating it underperform. Among 471 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 438 give VMware a green thumbs-up, and 33 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 $97.70.
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.
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.
More from The Motley Fool
Why VMware, Inc. Stock Surged 59.2% in 2017
VMware left investors without any doubts about its ability to grow revenue and earnings.
Why PayPal Holdings, VMware, and Align Technology Slumped Today
Learn about what sent these stocks south on a record day for the Dow.
VMware's Growth Businesses Are Booming
The software company reported another strong quarter, with some of its growth businesses producing triple-digit growth.