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Factors to Note Ahead of VMware's (VMW) Q2 Earnings Release
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VMware is scheduled to release second-quarter fiscal 2022 results on Aug 26.
For the quarter, the company expects total revenues to be $3.1 billion and non-GAAP earnings to be $1.62 per share.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.62, unchanged over the past 30 days, suggesting a 10.5% decline from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $3.1 billion, indicating a 7.9% increase from the year-ago reported number.
Its earnings beat the Zacks Consensus Estimate in all the last four quarters, with the average being 12.5%.
Let’s see how things have shaped up prior to this announcement.
VMware’s expanding product portfolio along with solid adoption of cloud and security solutions is expected to have driven top-line growth in second-quarter fiscal 2022. Synergies from the acquisitions of Pivotal Software, Carbon Black and SaltStack are expected to have acted as tailwinds.
Incremental gains from uptake of the company’s Tanzu platform across key verticals like financial services are likely to have positively contributed to the top-line performance. Heptio and Pivotal acquisitions combined with VMware Cloud native offerings make up Tanzu, a portfolio of products and services designed to transform the way enterprises build, run and manage application software.
The company has been benefiting from the ongoing cloud-based digital transformation, and steady traction witnessed for subscription and software as a service (SaaS) offerings. VMware expects Subscription, SaaS and license revenues to be $1.485 billion, indicating 10% year-over-year growth.
In the last reported quarter, VMware rolled out VMware Cloud Universal subscription service that provides clients with the flexibility to deploy applications on their preferred three VMware technology-based infrastructure stacks namely VMware Cloud on Amazon Web Service (“AWS”), VMware Cloud Foundation and VMware Cloud on Dell EMC. Incremental gains from the uptake of service is likely to have benefitted the performance in the to be reported quarter.
Higher demand for VMware Cloud on AWS solution is likely to have favored top-line growth. The company’s strategy of building partnerships with the likes of Microsoft’s (MSFT - Free Report) Azure, Alphabet’s (GOOGL - Free Report) Google Cloud is helping it expand customer base in the cloud space.
Continuation of work from home and adoption of hybrid work policy are likely to have driven demand for its latest VMware Anywhere Workspace solution. The new solution aids clients in the management of multi-modal employee experiences and safeguarding the distributed edge network. VMware Anywhere Workspace combines VMware Workspace ONE, VMware Carbon Black Cloud and VMware SASE offerings.
Key Q2 Developments
On Aug 3, VMWare rolled out new features to enable IT teams to seamlessly manage VMware Horizon deployments across on-premises and cloud environments. VMware Horizon forms part of the company’s VMware Workspace ONE solution.
On Jun 15, VMware and Cohere Technologies announced that they are collaborating to build an open radio access network solution that will enable communication service providers to enhance network and spectrum efficiencies.
On Jun 9, VMware and Vapor IO teamed up to develop a Multi-Cloud Services Grid by combining Vapor IO’s Kinetic Grid platform with VMware Telco Cloud Platform. This will help service operators to “hypercompose” grid services on-demand and slash expenses related to deployment of 5G systems.
On Jun 3, VMware announced that it is working with Zoom Video (ZM - Free Report) to offer a more secured hybrid work environment. Interoperability between VMware Anywhere Workspace and the Zoom collaboration platform is part of this initiative. This is expected to further simplify the usage, application and network performance as well as security.
Image: Bigstock
Factors to Note Ahead of VMware's (VMW) Q2 Earnings Release
VMware is scheduled to release second-quarter fiscal 2022 results on Aug 26.
For the quarter, the company expects total revenues to be $3.1 billion and non-GAAP earnings to be $1.62 per share.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.62, unchanged over the past 30 days, suggesting a 10.5% decline from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $3.1 billion, indicating a 7.9% increase from the year-ago reported number.
Its earnings beat the Zacks Consensus Estimate in all the last four quarters, with the average being 12.5%.
Let’s see how things have shaped up prior to this announcement.
VMware, Inc. Price and EPS Surprise
VMware, Inc. price-eps-surprise | VMware, Inc. Quote
Key Factors to Note
VMware’s expanding product portfolio along with solid adoption of cloud and security solutions is expected to have driven top-line growth in second-quarter fiscal 2022. Synergies from the acquisitions of Pivotal Software, Carbon Black and SaltStack are expected to have acted as tailwinds.
Incremental gains from uptake of the company’s Tanzu platform across key verticals like financial services are likely to have positively contributed to the top-line performance. Heptio and Pivotal acquisitions combined with VMware Cloud native offerings make up Tanzu, a portfolio of products and services designed to transform the way enterprises build, run and manage application software.
The company has been benefiting from the ongoing cloud-based digital transformation, and steady traction witnessed for subscription and software as a service (SaaS) offerings. VMware expects Subscription, SaaS and license revenues to be $1.485 billion, indicating 10% year-over-year growth.
In the last reported quarter, VMware rolled out VMware Cloud Universal subscription service that provides clients with the flexibility to deploy applications on their preferred three VMware technology-based infrastructure stacks namely VMware Cloud on Amazon Web Service (“AWS”), VMware Cloud Foundation and VMware Cloud on Dell EMC. Incremental gains from the uptake of service is likely to have benefitted the performance in the to be reported quarter.
Higher demand for VMware Cloud on AWS solution is likely to have favored top-line growth. The company’s strategy of building partnerships with the likes of Microsoft’s (MSFT - Free Report) Azure, Alphabet’s (GOOGL - Free Report) Google Cloud is helping it expand customer base in the cloud space.
Continuation of work from home and adoption of hybrid work policy are likely to have driven demand for its latest VMware Anywhere Workspace solution. The new solution aids clients in the management of multi-modal employee experiences and safeguarding the distributed edge network. VMware Anywhere Workspace combines VMware Workspace ONE, VMware Carbon Black Cloud and VMware SASE offerings.
Key Q2 Developments
On Aug 3, VMWare rolled out new features to enable IT teams to seamlessly manage VMware Horizon deployments across on-premises and cloud environments. VMware Horizon forms part of the company’s VMware Workspace ONE solution.
On Jun 15, VMware and Cohere Technologies announced that they are collaborating to build an open radio access network solution that will enable communication service providers to enhance network and spectrum efficiencies.
On Jun 9, VMware and Vapor IO teamed up to develop a Multi-Cloud Services Grid by combining Vapor IO’s Kinetic Grid platform with VMware Telco Cloud Platform. This will help service operators to “hypercompose” grid services on-demand and slash expenses related to deployment of 5G systems.
On Jun 3, VMware announced that it is working with Zoom Video (ZM - Free Report) to offer a more secured hybrid work environment. Interoperability between VMware Anywhere Workspace and the Zoom collaboration platform is part of this initiative. This is expected to further simplify the usage, application and network performance as well as security.
At present, VMWare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.