VMware (NYSE:VMW) Issues Q4 2022 Earnings Guidance

VMware (NYSE:VMW) issued an update on its fourth quarter 2022 earnings guidance on Wednesday morning. The company provided EPS guidance of $1.960-$1.960 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.890. The company issued revenue guidance of $3.51 billion-$3.51 billion, compared to the consensus revenue estimate of $3.56 billion.VMware also updated its FY 2022 guidance to $7.190-$7.190 EPS.

Shares of NYSE:VMW traded up $2.22 during midday trading on Thursday, hitting $118.70. The stock had a trading volume of 3,951,881 shares, compared to its average volume of 1,453,656. VMware has a 12 month low of $114.01 and a 12 month high of $172.00. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.52. The business has a 50-day moving average of $139.27. The firm has a market capitalization of $49.71 billion, a P/E ratio of 24.37, a P/E/G ratio of 2.16 and a beta of 0.75.

VMware (NYSE:VMW) last released its quarterly earnings data on Monday, November 22nd. The virtualization software provider reported $1.72 EPS for the quarter, topping the Zacks’ consensus estimate of $1.54 by $0.18. VMware had a net margin of 16.77% and a return on equity of 23.49%. The firm had revenue of $3.19 billion during the quarter, compared to analysts’ expectations of $3.12 billion. During the same period in the previous year, the business posted $1.05 earnings per share. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. On average, research analysts predict that VMware will post 4.6 EPS for the current year.

The business also recently disclosed a dividend, which was paid on Monday, November 1st. Shareholders of record on Friday, October 29th were given a dividend of $27.40 per share. This is a boost from VMware’s previous dividend of $26.81. The ex-dividend date of this dividend was Tuesday, November 2nd.

A number of equities research analysts have recently issued reports on the stock. Royal Bank of Canada reduced their target price on shares of VMware from $180.00 to $153.00 and set an outperform rating for the company in a research report on Wednesday, November 3rd. Deutsche Bank Aktiengesellschaft reduced their target price on shares of VMware from $145.00 to $135.00 and set a hold rating for the company in a research report on Wednesday. Citigroup reduced their target price on shares of VMware from $190.00 to $177.00 and set a buy rating for the company in a research report on Wednesday. They noted that the move was a valuation call. Bank of America dropped their price target on VMware from $175.00 to $150.00 and set a neutral rating for the company in a research note on Wednesday. Finally, Barclays dropped their price target on VMware from $163.00 to $140.00 and set an overweight rating for the company in a research note on Wednesday. Eleven research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of Hold and a consensus target price of $154.18.

In related news, EVP Amy Fliegelman Olli sold 1,478 shares of the company’s stock in a transaction that occurred on Thursday, September 2nd. The stock was sold at an average price of $147.18, for a total value of $217,532.04. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, President Sumit Dhawan sold 1,600 shares of the company’s stock in a transaction that occurred on Tuesday, September 7th. The shares were sold at an average price of $146.52, for a total value of $234,432.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 5,344 shares of company stock valued at $794,470. Insiders own 27.80% of the company’s stock.

An institutional investor recently raised its position in VMware stock. Morgan Stanley grew its holdings in shares of VMware, Inc. (NYSE:VMW) by 38.4% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 482,318 shares of the virtualization software provider’s stock after buying an additional 133,792 shares during the period. Morgan Stanley owned approximately 0.12% of VMware worth $77,157,000 as of its most recent filing with the SEC. 16.99% of the stock is currently owned by institutional investors.

VMware Company Profile

VMware, Inc engages in the provision of cloud infrastructure and business mobility. Its products include Software-Defined Data Center, Hybrid Cloud Computing, and End-User Computing. It supports modernizing data centers, integrating public clouds, empowering digital workspaces and transforming security.

Further Reading: What are retained earnings?

Earnings History and Estimates for VMware (NYSE:VMW)

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