FBR Capital Maintains a 'Market Perform' on VMware (VMW); Raising Numbers on Solid March Results
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Price: $142.48 --0%
Rating Summary:
17 Buy, 36 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 36 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains a 'Market Perform' on VMware (NYSE: VMW), raises PT from $83 to $97.
FBR analyst says, "Last night, VMware posted solid March results that handily beat our and Street expectations. In addition, the company gave a healthy top-line outlook for the June quarter and upped its 2011 guidance above Street expectations, which speaks to the fundamental health of VMware’s strong product cycle and commendable execution in the field. While the quarter was solid across the board, we were particularly impressed by the execution on the international front posting 40% year-over-year growth and the strength of enterprise license agreements (ELAs), which included five transactions north of $10 million being inked in the quarter. While some on the Street might have concerns around lack of forecasted sequential growth in license revenues for 2Q/3Q, as well as expecting better leverage given the impressive topline growth, we believe VMware continues to effectively execute on its strategy around balancing long-term growth and profitability."
"For FY11, we are increasing our total revenue and pro forma EPS estimates to $3.60 billion and $1.95, versus our prior estimates of $3.48 billion and $1.80. For FY12, we are increasing our total revenue and pro forma EPS estimates to $4.19 billion and $2.23, versus our prior estimates of $4.04 billion and $2.08."
For more ratings news on VMware click here and for the rating history of VMware click here.
Shares of VMware closed at $85.97 yesterday.
FBR analyst says, "Last night, VMware posted solid March results that handily beat our and Street expectations. In addition, the company gave a healthy top-line outlook for the June quarter and upped its 2011 guidance above Street expectations, which speaks to the fundamental health of VMware’s strong product cycle and commendable execution in the field. While the quarter was solid across the board, we were particularly impressed by the execution on the international front posting 40% year-over-year growth and the strength of enterprise license agreements (ELAs), which included five transactions north of $10 million being inked in the quarter. While some on the Street might have concerns around lack of forecasted sequential growth in license revenues for 2Q/3Q, as well as expecting better leverage given the impressive topline growth, we believe VMware continues to effectively execute on its strategy around balancing long-term growth and profitability."
"For FY11, we are increasing our total revenue and pro forma EPS estimates to $3.60 billion and $1.95, versus our prior estimates of $3.48 billion and $1.80. For FY12, we are increasing our total revenue and pro forma EPS estimates to $4.19 billion and $2.23, versus our prior estimates of $4.04 billion and $2.08."
For more ratings news on VMware click here and for the rating history of VMware click here.
Shares of VMware closed at $85.97 yesterday.
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