VMware Earnings Preview: Analysts Expect Higher EPS, Revenue

VMware (NYSE: VMW) unveils its next round of earnings this Monday, October 17, 2011. Here's Benzinga's essential guide to VMware's third quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 33 cents/share and revenues of $929 million. VMware's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 24 cents/share on revenues of $714.2 million. We'll have to wait for Monday to see if VMware falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of VMware were trading at $90.28 as of October 11, 2011. Shares are up 1.5% year to date. For a full 12 months, the return has risen by 29.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for VMware is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Want to check out the performance of VMware closest competitors? Take a look at some of the company's peers in the information technology sector.

• Citrix Systems (NASDAQ: CTXS): Hold with a $0.49 recent quarter EPS
• EMC (NYSE: EMC): Moderate Buy with a $0.29 recent quarter EPS
• Google (NASDAQ: GOOG): Moderate Buy with a $7.66 recent quarter EPS
• Hewlett-Packard Company (NYSE: HPQ): Hold with a $1.10 recent quarter EPS

The computer software company's industry has seen price/earnings growth of 2.8% during the current fiscal year.

Finally, a description of the company's main areas of operation: VMWare is a provider of virtual infrastructure software solutions from the desktop to the data center. It works with more than 1,300 technology partners, including leading server, microprocessor, storage, networking and software vendors.

Take Action:

There is your peek into VMware's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.

• To see up-to-date news on VMware, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here