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VMware (VMW) to Report Q3 Earnings: What's in the Cards?

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VMware is slated to release its third-quarter fiscal 2023 results on Nov 22.

The Zacks Consensus Estimate for quarterly earnings has been unchanged over the past 30 days at $1.60 per share, suggesting a 6.98% decline from the figure reported in the year-ago quarter.

Further, the consensus mark for revenues is pegged at $3.38 billion, indicating a 5.95% increase from the year-ago reported number.

VMware’s earnings beat the Zacks Consensus Estimate in three of the past four quarters, missing once, the average negative earnings surprise being 0.60%.
 

VMware, Inc. Price and EPS Surprise

VMware, Inc. Price and EPS Surprise

VMware, Inc. price-eps-surprise | VMware, Inc. Quote

 

Let’s see how things have shaped up prior to this announcement.

Key Factors to Note

VMware’s strong product portfolio, along with robust uptake of cloud and security solutions, is expected to have driven the top line in third-quarter fiscal 2023.

VMW’s top line is expected to have gained in the to-be-reported quarter from the ongoing cloud-based digital transformation and the increasing traction witnessed in subscription and software-as-a-service (SaaS) offerings.

The subscription and SaaS business is being driven by the robust uptake of VMware Cloud Provider Program, End-User Computing and Carbon Black.

Strong partner base is expected to have benefited VMware’s top-line growth in the to-be-reported quarter.

In the fiscal third quarter, VMware announced that it is expanding its partnership with Amazon Web Services (“AWS”) by launching capabilities in the jointly-engineered VMware Cloud on the AWS marketplace.

VMware has also partnered with IBM and Google Cloud, expanding its clientele.

What Our Model Unveils

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

VMware has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

MongoDB (MDB - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

MDB is scheduled to release its third-quarter fiscal 2023 results on Dec 6.

Intuit (INTU - Free Report) has an Earnings ESP of +3.15% and a Zacks Rank #3.

INTU is scheduled to release its first-quarter fiscal 2023 results on Nov 29.

Salesforce (CRM - Free Report) has an Earnings ESP of +7.13% and a Zacks Rank #3.

CRM is scheduled to release its third-quarter fiscal 2023 results on Nov 30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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