A Preview Of VMware's Earnings

VMware VMW will be releasing its next round of earnings this Thursday, August 26. For all of the relevant information, here is your guide for Thursday's Q2 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering VMware modeled for quarterly EPS of $1.64 on revenue of $3.10 billion. In the same quarter last year, VMware reported EPS of $1.81 on revenue of $2.88 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 9.39%. Sales would be have grown 7.83% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 10.1%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. VMware is scheduled to hold the call at 16:30:00 ET and can be accessed here.