VMware (VMW) Prelim. Q2 EPS Tops Views
VMware, Inc. (NYSE: VMW), a global leader in cloud infrastructure and business mobility, today announced preliminary financial results for its fiscal 2018 second quarter.
Preliminary Q2 Fiscal 2018 Results
Revenue for the second quarter is expected to be between $1.894 billion and $1.906 billion, an increase of 11.9% to 12.6% from the second quarter of 2016. License revenue for the second quarter is expected to be between $727 million and $737 million, an increase of 12.9% to 14.4% from the second quarter of 2016.
GAAP operating margin for the second quarter is expected to be between 17.5% and 19.3%, and non-GAAP operating margin is expected to be between 30.5% and 31.1%. GAAP net income per diluted share for the second quarter is expected to be between $0.78 and $0.86 per diluted share, and non-GAAP net income per diluted share is expected to be between $1.15 and $1.19 per diluted share.
(Street sees Q2 PES of $1.14 on revenue of $1.87B)
Increase in Fiscal Year 2018 Guidance
Due to strong performance in the second quarter of fiscal 2018 and continued broad-based strength across its product portfolio expected in the second half of fiscal 2018, the company increased fiscal 2018 guidance as follows:
- Total Revenue: Approximately $7.830 billion, up approximately 10% compared to fiscal 2016
- License Revenue: Approximately $3.075 billion, up approximately 10% compared to fiscal 2016
- GAAP Operating Margin: Approximately 20-21%
- Non-GAAP Operating Margin: Approximately 32.7%
- GAAP Net Income Per Diluted Share(1): Approximately $3.19-$3.47 per diluted share
- Non-GAAP Net Income Per Diluted Share(1): Approximately $5.08 per diluted share
- Diluted Share Count: 413 million
Additional details regarding second quarter financial results will be announced after market close on Thursday, August 24, 2017. The company will host a conference call at 2:00 p.m. PT/ 5:00 p.m. ET that day to provide additional details on financial results and business outlook. A live web broadcast of the event will be available on the VMware Investor Relations website at http://ir.vmware.com. The replay of the webcast will be available for two months.
Revised Fiscal Calendar -- Year-over-Year Comparisons of Quarterly Results
VMware revised its fiscal calendar effective January 1, 2017. VMware's first fiscal year under its revised fiscal calendar began on February 4, 2017 and will end February 2, 2018.
Year-over-year comparisons of quarterly financial results included in this press release compare results for VMware's fiscal 2018 second quarter (May 6, 2017 through August 4, 2017) to VMware's fiscal 2016 second quarter (April 1, 2016 through June 30, 2016) and VMware's fiscal year 2018 (February 4, 2017 through February 2, 2018) to VMware's fiscal year 2016 (January 1, 2016 through December 31, 2016).