VMware, Inc. (VMW): Earnings Whisper?

VMware, Inc. (VMW) is set to report second-quarter fiscal year 2015 results after the market close today. Expectations point towards EPS of $0.91 and revenue of $1.59 billion. That would be $0.05 better the $0.86 per share posted last quarter and $0.10 higher the $0.81 posted in the 2Q/14. Revs are projected to be 9% higher than the $1.46 billion posted in the same period a year earlier. Meanwhile, ticker’s earnings whisper number calls for EPS of $0.94 on revenue of $1.59 billion.

As a quick reminder, Vmware reported 1Q/15 EPS of $0.91, $0.07 better than the Street’s consensus estimate of $0.84. Revs fell 5.6% yoy to $1.51 billion versus the $1.50 billion consensus.

On valuation measures, VMware Inc. shares are priced at 41.33x this year’s forecasted earnings, compared to the industry’s 18.01x earnings multiple. The company’s current year and next year EPS growth estimates stand at 12.10% and 13.50% compared to the industry growth rates of 17.50% and 24.10%, respectively. VMW has a t-12 price-to-sales ratio of 5.79. EPS for the same period registers at $2.03.

VMW shares have declined 6.02% in the last 4 weeks and 0.62% in the past three months. Over the past 5 trading sessions the stock has gained 3.01%. The Palo Alto, Calif.-based company, which is currently valued at $35.58 billion, has a median Wall Street price target of $97.00 with a high target of $130.00. VMware Inc. is down 9.22% year-over-year, compared with a 7.75% gain in the S&P 500.

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