VMware (NYSE:VMW) Releases Quarterly Earnings Results, Misses Estimates By $0.28 EPS

VMware (NYSE:VMWGet Rating) posted its quarterly earnings results on Thursday. The virtualization software provider reported $1.28 EPS for the quarter, missing the consensus estimate of $1.56 by ($0.28), MarketWatch Earnings reports. The company had revenue of $3.09 billion for the quarter, compared to analysts’ expectations of $3.19 billion. VMware had a net margin of 14.16% and a return on equity of 30.03%. The company’s revenue was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.24 earnings per share.

VMW traded up $3.26 during mid-day trading on Thursday, hitting $123.80. The stock had a trading volume of 260,356 shares, compared to its average volume of 1,860,957. The stock’s fifty day simple moving average is $109.84 and its 200-day simple moving average is $116.78. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.83 and a quick ratio of 0.83. The firm has a market capitalization of $52.13 billion, a price-to-earnings ratio of 28.61, a price-to-earnings-growth ratio of 1.56 and a beta of 0.68. VMware has a 1-year low of $91.53 and a 1-year high of $167.83.

A number of research analysts have weighed in on the stock. JPMorgan Chase & Co. cut their target price on shares of VMware from $160.00 to $115.00 and set an “overweight” rating for the company in a research report on Friday, February 25th. Cross Research lowered their target price on shares of VMware from $165.00 to $140.00 and set a “buy” rating on the stock in a research note on Friday, February 25th. Oppenheimer decreased their price objective on shares of VMware from $148.00 to $135.00 and set an “outperform” rating on the stock in a research note on Friday, February 25th. Barclays decreased their price target on shares of VMware from $140.00 to $135.00 in a research note on Friday, February 25th. Finally, Morgan Stanley decreased their price target on shares of VMware from $147.00 to $138.00 and set an “equal weight” rating on the stock in a research note on Friday, February 25th. Ten equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $139.05.

In related news, CFO Zane Rowe sold 34,172 shares of the firm’s stock in a transaction on Monday, April 4th. The shares were sold at an average price of $114.61, for a total transaction of $3,916,452.92. Following the sale, the chief financial officer now directly owns 171,042 shares in the company, valued at $19,603,123.62. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Amy Fliegelman Olli sold 18,338 shares of the firm’s stock in a transaction on Monday, May 23rd. The stock was sold at an average price of $125.00, for a total transaction of $2,292,250.00. Following the sale, the executive vice president now owns 77,034 shares in the company, valued at $9,629,250. The disclosure for this sale can be found here. Over the last quarter, insiders sold 60,166 shares of company stock worth $7,081,793. Company insiders own 27.80% of the company’s stock.

Several large investors have recently modified their holdings of VMW. Zions Bancorporation N.A. grew its position in VMware by 140.2% in the first quarter. Zions Bancorporation N.A. now owns 233 shares of the virtualization software provider’s stock valued at $27,000 after purchasing an additional 136 shares in the last quarter. Covestor Ltd grew its position in VMware by 31.0% in the first quarter. Covestor Ltd now owns 651 shares of the virtualization software provider’s stock valued at $74,000 after purchasing an additional 154 shares in the last quarter. Tobam grew its position in VMware by 111.3% in the fourth quarter. Tobam now owns 674 shares of the virtualization software provider’s stock valued at $78,000 after purchasing an additional 355 shares in the last quarter. Brown Brothers Harriman & Co. grew its position in VMware by 3,733.3% in the first quarter. Brown Brothers Harriman & Co. now owns 1,150 shares of the virtualization software provider’s stock valued at $131,000 after purchasing an additional 1,120 shares in the last quarter. Finally, Synovus Financial Corp bought a new position in VMware in the fourth quarter valued at $202,000. Institutional investors and hedge funds own 47.04% of the company’s stock.

About VMware (Get Rating)

VMware, Inc provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; and vRealize Cloud Management solutions that manages hybrid and multi-cloud environments running in virtual machines and containers, as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with vRealize Cloud Management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds.

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