VMware (VMW) got here out with quarterly earnings of $1.66 per share, beating the Zacks Consensus E
VMware (VMW) got here out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.49 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 16.08%. 1 / 4 in the past, it was anticipated that this cloud computing firm would publish earnings of $1.45 per share when it really produced earnings of $1.81, delivering a shock of 24.83%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
VMware, which belongs to the Zacks Pc – Software program business, posted revenues of $2.86 billion for the quarter ended October 2020, surpassing the Zacks Consensus Estimate by 2.04%. This compares to year-ago revenues of $2.46 billion. The corporate has topped consensus income estimates 4 instances during the last 4 quarters.
The sustainability of the inventory’s quick worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
VMware shares have misplaced about 1.9% because the starting of the yr versus the S&P 500’s achieve of 10.7%.
What’s Subsequent for VMware?
Whereas VMware has underperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a formidable monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for VMware was combined. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You may see the whole checklist of right now’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.87 on $3.20 billion in revenues for the approaching quarter and $6.64 on $11.61 billion in revenues for the present fiscal yr.
Buyers ought to be conscious of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Pc – Software program is at the moment within the backside 34% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Need the most recent suggestions from Zacks Funding Analysis? At the moment, you may obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report
VMware, Inc. (VMW): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
Zacks Funding Analysis
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.