) is set to report second quarter 2014 results on Jul 22. Last
quarter, it posted a 1.82% positive surprise. The company has
posted an average positive earnings surprise of 5.96% over the past
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
We believe that VMware's ability to innovate, enter into new
technological collaborations and solutions, along with its existing
product pipeline and strategic investments will drive the top line
over the long term.
Its continuous contract wins, robust international sales and
the acquisitions of Desktone and AirWatch will boost revenues,
Additionally, the strategic alliances that it has formed with
companies like Google, F5 Networks and Nvidia will enhance its
desktop-as-a-service (daas) offering, which in turn will aid
growth, going forward.
However, sluggish IT spending and stiff competition from the likes
of Microsoft and Citrix Systems remain a major headwind going
Our proven model does not conclusively show that VMware is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus
Estimate stand at 53 cents. Hence, the difference is of 0.00%.
Zacks Rank #4 (Sell): We caution against stocks with Zacks #4 and
#5 Ranks (Sell rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Silicon Motion Technology Corp.
), Earnings ESP of +33.33% and Zacks Rank #1 (Strong Buy).
), Earnings ESP of +3.81% and Zacks Rank #2 (Buy).
), Earnings ESP of +13.89% and Zacks Rank #2.
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VMWARE INC-A (VMW): Free Stock Analysis Report
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SILICON MOTION (SIMO): Free Stock Analysis
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