VMware Earnings Preview: Analysts Expect Rising Revenue

VMware VMW earnings are just around the corner! Don't be the last to know: The company announces its next round of earnings this Tuesday, July 19, 2011.

Wondering what Wall Street is thinking ahead of VMware's lastest earnings numbers? Get the latest predictions in our essential guide to the company's second quarter earnings report.

Let's Do the Numbers:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 31 cents per share and revenues of $873.3 million. We'll have to wait for Tuesday 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:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	27 cents	29 cents	22 cents	20 cents
EPS Actual	27 cents	24 cents	24 cents	20 cents

Stock Performance:

As of July 13, 2011, VMware's current share price was $100.28. Since January 1st, shares of VMware have given investors a return of 12.8%. For a full 12 months, the return has risen by 16.1%. 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 crept upwards 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 CTXS: Hold with a $0.41 recent quarter EPS
• EMC EMC: Moderate Buy with a $0.24 recent quarter EPS
• Google GOOG: Moderate Buy with a $7.04 recent quarter EPS
• Hewlett-Packard Company HPQ: Hold with a $1.24 recent quarter EPS

The computer software company's industry has seen price/earnings growth of 3.8% during the current fiscal year.

Finally, a description of the main business areas of the company, in case you need a little refresher: VMWare, Inc. 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:

Now that you have reviewed all the numbers, be ready to move if the upcoming VMware earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

• 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