Earnings Review and Free Research Report: VMware’s Revenue Jumped 12.2%; EPS Surged 30%

Research Desk Line-up: Okta, Inc. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on VMware, Inc. (NYSE: VMW), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=VMW, following the Company's posting of its second quarter fiscal 2018 results on August 24, 2017. The global leader in cloud infrastructure and business mobility outperformed top- and bottom-line expectations and also raised its revenue and cash flow guidance for the year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Technical & System Software industry. Pro-TD has currently selected Okta, Inc. (NASDAQ: OKTA) for due-diligence and potential coverage as the Company announced on September 07, 2017, its financial results for Q2 FY18 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Okta, Inc. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VMW; also brushing on OKTA. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=VMW

http://protraderdaily.com/optin/?symbol=OKTA

Earnings Reviewed

Revised Fiscal Calendar

VMware revised its fiscal calendar effective January 01, 2017. VMware's first fiscal year under its revised fiscal calendar began on February 04, 2017, and will end February 02, 2018. The period from January 01, 2017, through February 03, 2017, was recorded as a transition period. The Company noted that y-o-y comparisons of quarterly financial results compare results for VMware's Q2 FY18 (May 06, 2017, to August 04, 2017) to VMware's Q2 2016 (April 01, 2016, through June 30, 2016).

Earnings Summary

For the quarter ended August 04, 2017, VMware reported revenue of $1.90 billion, reflecting an increase of 12.2% from revenue of $1.69 billion in Q2 2016. Total revenue plus the sequential change in total unearned revenue grew 18% on a y-o-y basis. The Company's revenue numbers beat analysts' expectations of $1.88 billion.

For Q2 FY18, VMware's GAAP operating income was $338 million, an increase of 5% from operating income of 323 million in Q2 2016. The Company's non-GAAP operating income for the reported quarter was $585 million, an increase of 15% on a y-o-y basis.

VMware's GAAP net income was $334 million, or $0.81 per diluted share, for Q2 FY18, up 30% per diluted share compared to $265 million, or $0.62 per diluted share, for Q2 2016. The Company's non-GAAP net income was $489 million, or $1.19 per diluted share, for the reported quarter, up 22% per diluted share versus $414 million, or $0.97 per diluted share, for the year ago comparable period. VMware's earnings beat Wall Street's estimates of $1.15 per share.

VMware's Segment Results

During Q2 FY18, License revenue grew 13.7% to $732 million compared to Q2 2016 license revenue of $644 million. The Company's License revenue plus sequential change in unearned license revenue grew 14% on a y-o-y basis.

For Q2 2017, Services revenue totaled $1.17 billion compared to revenue of $1.05 billion in the year ago same period.

Cash Matters

VMware's operating cash flows were $620 million for Q2 FY18 compared to $577 million in Q2 2016. The Company's fee cash flows for the reported quarter were $563 million. VMware's cash, cash equivalents, and short-term investments were $8.9 billion, and unearned revenue was $5.5 billion as of August 04, 2017.

VMware's debut debt offering of $4 billion in 3-, 5- and 10-year senior unsecured notes was completed on August 21, 2017.The Company's Board of Directors authorized $1 billion for stock repurchases through August 31, 2018, in addition to the $900 million authorized amount remaining in the ongoing $1.2 billion stock repurchase program for fiscal 2018, originally announced in January 2017.

Outlook

VMware increased its revenue guidance for fiscal 2018 to approximately $7.83 billion, up approximately 10% on a y-o-y basis. The Company raised license revenue guidance to approximately $3.08 billion, also up approximately 10% on a y-o-y basis.

For FY18, VMware's non-GAAP operating margin is expected to be approximately 32.7%. The Company's non-GAAP earnings per share are expected to be approximately $5.06. VMware also raised its guidance for cash flow from operations to approximately $3 billion for fiscal 2018.

For Q3 FY18, VMware is forecasting total revenue to be between $1.93 billion and $1.98 billion and expect license revenue to be between $755 million and $785 million. The Company is estimating non-GAAP operating margin to be approximately 33.4% and expects non-GAAP earnings per share to be between $1.25 and $1.28 per share.

Stock Performance

VMware's share price finished yesterday's trading session at $109.60, advancing 1.75%. A total volume of 1.85 million shares have exchanged hands, which was higher than the 3-month average volume of 1.62 million shares. The Company's stock price skyrocketed 23.41% in the last three months, 21.27% in the past six months, and 48.77% in the previous twelve months. Additionally, the stock soared 39.21% since the start of the year. Shares of the Company have a PE ratio of 34.53 and currently have a market cap of $45.07 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily