VMware (VMW) to Report Q2 Earnings: What's in the Cards?
VMware VMW is slated to release its second-quarter fiscal 2024 results on Aug 31.
The Zacks Consensus Estimate for quarterly earnings has been unchanged over the past 30 days at $1.66 per share, suggesting 1.22% growth from the figure reported in the year-ago quarter.
Further, the consensus mark for revenues is pegged at $3.39 billion, indicating a 1.57% increase from the year-ago reported number.
VMware’s earnings beat the Zacks Consensus Estimate in two of the past four quarters, missing twice, the average negative earnings surprise being 0.95%.
VMware is in the process of being acquired by Broadcom, which recently affirmed its expectation of closing the deal by Oct 30, 2023.
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 second-quarter fiscal 2024.
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 businesses are being driven by the robust uptake of the VMware Cloud Provider Program, End-User Computing and Carbon Black. Expanding features of VMware Tanzu and VMware Aria platforms are expected to have helped the company in attracting new customers.
A strong partner base that includes Amazon, IBM and Google Cloud is expected to have benefited VMware’s top-line growth in the to-be-reported quarter.
In the fiscal second quarter, VMware inked a partnership with AMD, Samsung and members of the RISC-V Keystone community to simplify the development and operations of confidential computing applications.
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:
American Eagle Outfitters AEO has an Earnings ESP of +8.52% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters is set to release its second-quarter 2023 results on Sep 6. AEO shares have gained 13.3% year to date.
Patterson Companies PDCO currently has an Earnings ESP of +5.66% and a Zacks Rank #2.
PDCO shares have returned 20% year to date. Patterson Companies is set to report its first-quarter fiscal 2024 results on Aug 30.
Five Below FIVE has an Earnings ESP of +1.21% and a Zacks Rank #2.
FIVE shares have gained 0.5% year to date. Five Below is set to report its second-quarter fiscal 2023 results on Aug 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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VMware, Inc. (VMW) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
