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VMware (VMW) to Report Q1 Earnings: What's in the Cards?

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VMware is slated to release its first-quarter fiscal 2024 results on Jun 1.

The Zacks Consensus Estimate for quarterly earnings has been unchanged over the past 30 days at $1.57 per share, suggesting a 22.66% increase from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $3.31 billion, indicating a 7.15% 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 4.29%.

Let’s see how things have shaped up prior to this announcement.

VMware, Inc. Price and EPS Surprise

VMware, Inc. Price and EPS Surprise

VMware, Inc. price-eps-surprise | VMware, Inc. Quote

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 first-quarter fiscal 2024.

VMW’s top line is expected to have gained in the to-be-reported quarter from the ongoing new advancements in its Anywhere Workspace solutions, aiming to enhance automation capabilities and facilitate the process of IT modernization.

The company has been making improvements in its VMware Tanzu and VMware Aria platforms to support and expedite the development and delivery of modern applications. This is expected to have positively impacted the number of customers in the to-be-reported quarter.

A strong partner base, which includes Amazon, IBM and Google Cloud, is expected to have benefited VMware’s top-line growth in the to-be-reported quarter.

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 at present. 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 the upcoming releases:

Zscaler (ZS - Free Report) has an Earnings ESP of +4.47% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zscaler is likely to release its third-quarter 2023 results on Jun 1. Shares of ZS have declined 16.7% year to date against the Zacks Computer & Technology sector’s increase of 31.4%.

C3.ai (AI - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank #3.

C3.ai is set to report its fourth-quarter fiscal 2023 results on May 31. Shares of AI have gained 194.4% year to date.

Jabil (JBL - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.

Jabil is set to report its third-quarter fiscal 2023 results on Jun 15. Shares of JBL have gained 34.3% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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