Monday, October 18, 2010

VMware Reports Good Q3 Earnings (Financial Performance Charts & Review) *Meets our estimated EPS $0.20* VMW

^v^ ^v^ ^v^

VMware reported earnings on Monday, October 18

VMware Reports Good Q3 Earnings

Financial charts of VMware data and related commentary have been updated on the VMware Financial Performance page for the September Q3 2010 financial results reported by VMware. The charts are:

VMware Performance by the Quarters
Earnings per Share and Cash Flow per Share
Total Revenues, Operating Income, and Net Income
Gross, Operating, & Net Margins
Return on Assets
Total Revenues & Earnings per Share Growth

Income Statement Q3 VMware reported total revenues of $714M, net income of $84.6M, and earnings per share of $0.20. From the prior quarter Q2 2010, total revenues were up +6.0%, net income up +13.5%, and earnings per share up +11.1%. From the prior year Q3 2009, these were up +45.8%, +121.4%, and +122.2%, respectively. QoQ increases were as we estimated, though below analysts' estimates, and YoY increases were excellent. For Q3, gross, operating, and net margins were 82.3%, 13.2%, and 11.8%, respectively. Gross margin remains stable, operating margin is down QoQ and up YoY, and net margin is up both QoQ and YoY. Cash flow from operations was a poor $0.46 per share, has now decreased for 2 consecutive quarters, and is down QoQ and YoY.

Balance Sheet Q3 Total assets increased +4.6% to a record $6.065B from the prior quarter of $5.797B. The capital to assets ratio (total stockholders' equity divided by total assets) is 58%, a multi-year high. The current ratio (current assets divided by total assets) is a very liquid 59%, though lower than the 60%+ traditional range. VMware is very liquid with strong capital. Q3 total deferred revenue increased $51M and +2.6%, which is lower than the Q2 increase of $153M and +8.6%. However, company guidance for Q4 total revenues is in the $790M - $810M range, a QoQ growth rate of +10.6% to +13.4%.

Our Estimate Q3 VMware met our estimates. "VMware will beat Q2 EPS of $0.18 and the Q3 EPS will be $0.20. We estimate Q3 Total Revenues of $721M but the margins will only generate an EPS of $0.20. We think VMware continues to have an excellent future, Q3 should be a turning point to the upside, and Q4 will be even better than Q3. Disclosure: We have no position, long or short, in VMW."

Our Estimate Q4 VMware offered guidance for Q4 December 2010 total revenues of $790M to $810M, a QoQ growth rate of +10.6% to +13.4%. For the present, our early estimate of the Q4 EPS is a minimum $0.22 compared to Q3 EPS of $0.20, a +10.0% increase.

Disclosure We have no position, long or short, in VMW.

Related Articles and Links

Recent Posts by Apple Digest
Apple Reports Record Revenues & Net Income! (Financial Performance Charts & Commentary) *EPS $4.64* AAPL
Apple Powers Up! (Charts) *Record closing high $314.74, reports earnings Monday* AAPL
Apple TV Reviews (Videos) *What is & how does Apple TV work?*
Apple Launches iPhone 4 in China (Video) AAPL
Apple Launches iPad in China (Video) AAPL
Recent Posts by Google Investor
Google Is Back! (Charts) *Reports excellent Q3 earnings, up $60.52 on Friday* GOOG
Google Q3 Earnings Conference Call (Review, Notes, Audio) "Explosive growth in the digital economy" GOOG
Google Reports Excellent Q3 Earnings (Financial Charts & Review) *Revenues $7.286B, EPS $6.72* GOOG
Logitech Launches Google TV (Video) *Will begin shipping by end of October*
Here Comes Google TV (Video) *NBA, HBO, CNN, CNBC, Twitter, Netflix, Amazon Video*
Recent Posts by Matrix Markets
S&P 500 Posts Another Weekly Gain (Charts) *Bulls rally 6 of last 7 weeks* SPX SPY
Recent Posts by Osprey Flyer
Intel Reports Very Good Q3 Earnings (Financial Charts & Review) *Revenues $11.1B, EPS $0.52* INTC
Microsoft Launches Windows Phone 7 (Videos) *Aims at Apple iPhone & Google Android* MSFT AAPL GOOG
Microsoft Financial Performance Review (Charts) *Earnings to be reported October 28* MSFT
Battle for the Digital Living Room (Chart) *Apple, Google, Microsoft early front runners*
Did One Large Trader Cause the May 6 Flash Crash? (Videos) *Did an algorithm trigger the Crash?*

More Charts!

USA and Global economic charts
Apple (AAPL) financial performance and stock charts
Google (GOOG) financial performance and stock charts
Microsoft (MSFT) financial performance charts
Intel (INTC) financial performance charts
VMware (VMW) financial performance charts
JPMorgan Chase & Co. (JPM) financial performance charts
Citigroup (C) financial performance charts
Goldman Sachs (GS) financial performance charts
S&P 500 charts and review

Follow Osprey Flyer on Twitter!

^v^ ^v^ ^v^

No comments:

Post a Comment

Seeking Alpha