VMware, Inc
Q2 Rev Est.: $658.24 M
Q2 EPS Est.: $0.33
On average, analysts are expecting second-quarter revenue for VMware, Inc (“VMW”) to come in at $654.02 M with earnings of $0.32 per share. Both of these figures are lower than my estimates of $658.24 M in revenue and $0.33 in earnings. Shares of the software maker have risen a shocking 70% year-to-date. This is in comparison to the DJI being slightly negative over the same time period. Even more spectacular is the 1-year chart, showing a 140% increase in VMW share price compared to a < 20% rise in the DOW. With the estimates that I have generated, there is a 3.13% EPS surprise built in. While this is a seemingly positive indicator, readers must be aware that this is in comparison to an average surprise of 14.7% over the previous four quarters. As a result of these factors, I have decided to place a buy puts Trading Recommendation on the stock.
Income Statement | |
For the three months ended June 30, 2010 | |
Total Revenue | $658,239 |
Operating Ex: | |
Cost of License Rev | $13,436 |
Cost of Services Rev | $66,952 |
R&D | $128,622 |
S&M | $212,282 |
G&A | $60,140 |
Operating Income | $176,806 |
Investment Income | $926 |
Interest Ex. | -$991 |
Other Ex. | -$1,836 |
Income before Taxes | $174,906 |
Taxes | $36,730 |
Net Income | $138,175 |
Diluted EPS | $0.33 |
Trading Recommendation: Buy Puts
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VMW Ownership
Author: NO
Author’s Family: NO
Disclaimer:
· Opinions, estimates and projections contained in this report are of the author as of the date published and are subject to change without notice.
· This report is not, nor should it be construed as, an offer to sell or solicitation of an offer to buy any securities.
· Unless otherwise noted, all research reports provide information of a general nature and do not address the circumstances of any particular investor.
· Opinions, estimates and projections contained in this report are of the author as of the date published and are subject to change without notice.
· This report is not, nor should it be construed as, an offer to sell or solicitation of an offer to buy any securities.
· Unless otherwise noted, all research reports provide information of a general nature and do not address the circumstances of any particular investor.
· It is important to do your own due diligence on any position you enter.
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