Goldman Sachs Previews Earnings From VMware

Goldman Sachs is out with a research report on VMware, Inc. VMW as the company is set to report earnings this week. It has a Buy rating and a $130 price target on shares. In a note to clients, Goldman Sachs writes, "VMware will report 2Q2011 results on Tuesday, July 19, after the close. We are modeling total 2Q revenue and EPS of $875 mn (Street: $873mn) and $0.47 (Street: $0.47). Management guided for total revenue in a range of $860-$880 mn and for license revenue to be flat sequentially; as a result, both GS and consensus are looking for 2Q2011 license revenue to be flat qoq at roughly $420 mn. As for bookings, we are modeling $915 mn, down 5% qoq, which compares to up 18% and down 9% over the prior two 2Qs (our estimate of consensus is $917 mn, down 5% qoq), respectively." Shares of VMW gained $2.12 on Friday to close at $102.67.