Brokerages Anticipate VMware, Inc. (NYSE:VMW) Will Announce Quarterly Sales of $2.65 Billion

Wall Street brokerages expect that VMware, Inc. (NYSE:VMW) will post sales of $2.65 billion for the current quarter, Zacks Investment Research reports. Nine analysts have made estimates for VMware’s earnings, with the highest sales estimate coming in at $2.74 billion and the lowest estimate coming in at $2.50 billion. VMware posted sales of $2.27 billion during the same quarter last year, which would suggest a positive year over year growth rate of 16.7%. The business is scheduled to report its next quarterly earnings results after the market closes on Thursday, May 28th.

According to Zacks, analysts expect that VMware will report full year sales of $11.50 billion for the current year, with estimates ranging from $10.73 billion to $12.06 billion. For the next financial year, analysts expect that the business will report sales of $12.62 billion, with estimates ranging from $11.55 billion to $13.37 billion. Zacks Investment Research’s sales averages are an average based on a survey of analysts that follow VMware.

VMware (NYSE:VMW) last released its quarterly earnings results on Thursday, February 27th. The virtualization software provider reported $2.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.17 by ($0.12). The company had revenue of $3.07 billion for the quarter, compared to the consensus estimate of $2.95 billion. VMware had a return on equity of 40.10% and a net margin of 62.27%. The business’s revenue was up 11.3% compared to the same quarter last year. During the same quarter last year, the company posted $1.98 EPS.

Several research analysts have recently issued reports on the company. Sanford C. Bernstein upgraded VMware from a “market perform” rating to an “outperform” rating and raised their price target for the stock from $171.00 to $181.00 in a research report on Thursday, February 6th. Raymond James reduced their price target on VMware from $164.00 to $140.00 and set an “outperform” rating on the stock in a research report on Friday, April 3rd. Stifel Nicolaus reduced their price target on VMware from $178.00 to $150.00 and set a “hold” rating on the stock in a research report on Friday, February 28th. ValuEngine upgraded VMware from a “hold” rating to a “buy” rating in a research report on Friday, March 6th. Finally, KeyCorp dropped their price objective on VMware from $172.00 to $160.00 and set an “overweight” rating on the stock in a research note on Friday, April 17th. One analyst has rated the stock with a sell rating, ten have given a hold rating and sixteen have issued a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $163.14.

In related news, COO Sanjay Poonen sold 66,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $126.62, for a total value of $8,356,920.00. Following the completion of the sale, the chief operating officer now directly owns 228,516 shares in the company, valued at $28,934,695.92. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Zane Rowe sold 14,548 shares of the business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $118.94, for a total value of $1,730,339.12. Following the completion of the sale, the chief financial officer now owns 156,137 shares of the company’s stock, valued at $18,570,934.78. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 181,683 shares of company stock valued at $22,575,871. Corporate insiders own 28.80% of the company’s stock.

Several hedge funds have recently modified their holdings of the stock. Clearbridge Investments LLC boosted its stake in shares of VMware by 2.6% in the first quarter. Clearbridge Investments LLC now owns 3,607,847 shares of the virtualization software provider’s stock valued at $436,910,000 after buying an additional 92,827 shares during the period. Advisor Group Holdings Inc. bought a new stake in shares of VMware in the first quarter valued at approximately $2,012,000. Ameritas Investment Company LLC raised its position in VMware by 931.7% during the first quarter. Ameritas Investment Company LLC now owns 423 shares of the virtualization software provider’s stock valued at $50,000 after purchasing an additional 382 shares in the last quarter. Sawgrass Asset Management LLC raised its position in VMware by 1.7% during the first quarter. Sawgrass Asset Management LLC now owns 73,501 shares of the virtualization software provider’s stock valued at $8,901,000 after purchasing an additional 1,234 shares in the last quarter. Finally, Fondren Management LP acquired a new position in VMware during the first quarter valued at approximately $242,000. Institutional investors and hedge funds own 17.10% of the company’s stock.

VMW traded up $1.73 during mid-day trading on Wednesday, reaching $139.66. The stock had a trading volume of 1,267,175 shares, compared to its average volume of 1,453,883. The stock has a market capitalization of $56.26 billion, a P/E ratio of 9.13, a P/E/G ratio of 2.25 and a beta of 0.76. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.65 and a current ratio of 0.65. The firm’s fifty day simple moving average is $132.71 and its two-hundred day simple moving average is $141.71. VMware has a 52 week low of $86.00 and a 52 week high of $201.57.

About VMware

VMware, Inc provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally. The company offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions.

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