Earnings Report of Q3 of VMware : What’s the Catch?
VMware Inc., the leading virtualization & network infrastructure is said to report third-quarter earnings on Oct. 26.
Particularly, the previous months have been active for the IT leader, and now under the Dell Technologies as a portfolio company of newly owned EMC Corp by Dell.
VMware Guides on the Cloud Market Growth
On an average, prediction by the analysts the Q3 of VMware EPS (earnings per share) to come in at $1.10, and 10% approximate increase from EPS is reported as the same period last year. The estimate stands at $1.76 billion by consensus revenue, that reflects a predicted increase of 5.4% in sales YOY (year-over-year). Last quarter year, VMware beat the expectations of the analysts for the 6th consecutive quarter. The revenues of $1.69 billion is indicated in GAAP EPS of $0.62 and of non-GAAP EPS is $0.97. The CEO of VMware CEO Pat Gelsinger guided on the foreseen growth in the cloud market and most of the growth was driven by the segment of VMware services.
VMware after competing with Amazon Web Services in the cloud space, finally joined the e-commerce giant in a ground breaking deal recently. ‘VMware Cloud on AWS’ has been made available to provide joint customers a hybrid cloud offering while they make a move from their existing on-premise data centers to the newer public cloud platforms.
On Thursday afternoon, VMware’s stock price was trading at $73.16 – representing a 30% overall increase year-to-date. Major investors are confident that VMware will push ahead as a market leader in emerging field like the cloud.
Irrespective of the weak guidance which VMware offered for 2016, the reputed company has been able to competitively beat analysts’ targets in Q1 and Q2.