Fri, Aug. 19, 7:43 AM
Tue, Jul. 26, 1:20 PM
- Following last week's favorable earnings report and EMC, Dell merger, Morgan Stanley reissues an Overweight rating and $86 price target ($72.78 current price) on VMware (VMW +0.6%).
- Citigroup reissues a Neutral rating and $79 price target (previously holding a Buy rating and $99 target).
- Morgan Stanley analyst Keith Weiss sees a return to focus on fundamentals following relative uncertainty prior to the EMC, Dell deal.
- He also cites AirWatch, NSX and vSAN product categories as having reached adequate scale to offset slowing growth in a maturing virtualization business.
- Suggests an inflection point in license growth and sees this area increasing going forward.
- Believes the company has a good shot of exceeded upcoming consensus EPS and margin estimates resulting from improved operating and capital expenditure investments, a planned share buyback of $1.2B through end of year and an end to a cycle of downward revised estimates.
- Projects both FY17 revenue and EPS to be 3%-5% above consensus.
- Citigroup analyst Walter Pritchard, on the other hand, takes up issue with the share structure resulting from the EMC, Dell deal. He sees supply outweighing demand and possible exposure for Class V shares to trade as Dell and disproportionately weigh down Class A shares should anything negative occur.
Tue, Jul. 19, 3:24 PM
- EMC (EMC +2.1%) announces the near-unanimous approval of its shareholders to merge with privately-held Dell.
- $60B deal would mark the largest ever in the technology space.
- The newly formed company will be known as Dell Technologies and will absorb EMC's VMware (VMW +9.3%), RSA Security and Virtustream.
- From Joe Tucci, EMC Chairman and CEO: "Today's resoundingly favorable shareholder vote clearly supports our view that combining Dell and EMC will create a powerhouse in the technology industry. The Board and I care very deeply about, and have worked diligently to represent, what we believe is the best outcome for all stakeholders. I want to thank our shareholders for their support, as well as our customers and partners. My special thanks to the talented people of EMC for their hard work, dedication and passion."
- The release also notes one of the remaining obstacles in the way of completing the deal is securing regulatory approval from China, something that has proved a challenge for some other technology deals just this week. However, the EMC memo does state the deal is expected to be completed within the initially declared timeframe sometime around the fall.
- This news comes just after yesterday's positive earnings report.
Tue, Jul. 19, 11:30 AM
- VMware (VMW +9.2%) beat earnings expectations yesterday and is up solidly into late morning trading.
- Strengthening balance sheet noted.
- $1.2B stock repurchase plan announced last quarter reiterated.
- License revenues of $644M, +1% improvement Y/Y.
- GAAP net income of $265M vs. $172M Y/Y.
- Non-GAAP net income $414M vs. $396M Y/Y.
- GAAP and non-GAAP operating income of $323M (+57% Y/Y) and $509M (+6% Y/Y), respectively.
- Operating and free cash flows of $577M and $539M, respectively.
- Cash, cash equivalents and short-term investments of $8.67B.
- Unearned revenue of $5.12B dated as of June 30.
Tue, Jul. 19, 9:14 AM
Mon, Jul. 18, 6:57 PM
- VMware (NYSE:VMW) shares are rising in extended trading after beating expectations with a favorable Q2 earnings report.
- EPS of $0.97 vs. $0.95 expected and revenue of $1.69B vs. $1.59B expected.
- From VMware CEO Pat Gelsinger: "Q2 was a continuation of the good start to the year we experienced in Q1, both for results and against our strategic goal of building momentum for our newer growth businesses and in the cloud. Customers are turning to VMware to help them run, manage, secure and connect their applications across all clouds and all devices, with unparalleled connectivity, security and visibility."
- Also having released earnings today, IBM (NYSE:IBM) heavily considers cloud services an area of growth that warrant increased focus. With VMware specializing in cloud computing and virtualization coupled with today's encouraging report, it seemingly appears the company is well positioned within this arena.
Mon, Jul. 18, 5:35 PM
Mon, Jul. 18, 4:16 PM
Sun, Jul. 17, 5:35 PM
Mon, Jul. 11, 12:30 PM
Wed, Jul. 6, 10:39 AM
- Proxy advisory firm Glass Lewis is recommending a vote for merging with Dell, EMC (EMC -0.2%) has announced.
- That's ahead of a special meeting to consider the issue set for July 19.
- "Overall, we find that the proposed transaction is financially and strategically reasonable from the perspective of EMC and its shareholders," Glass Lewis said in its statement. "The proposed consideration represents what is, in our view, an attractive premium to the unaffected closing price of EMC shares and appears generally reasonable in numerous analyses presented by the independent financial advisers, including relative to peer trading multiples, premiums paid and discounted cash flows including stock based compensation expense."
- "The proposed consideration will allow shareholders to realize a substantial portion of their investment in cash and to continue to participate in the future performance of VMware (VMW +0.4%)."
Fri, May 6, 1:23 AM
- More than four years after EMC and VMware (NYSE:VMW) put various app development tool, cloud app platform (PaaS), and big data/analytics hardware and software assets into a spinoff called Pivotal - both companies still own large stakes - Pivotal has raised $253M in a Series C funding round valuing the company at $2.8B. (PR)
- Microsoft, GE, and Ford took part in the round, as did EMC and VMware. Back in 2013, GE spent $105M to buy a 10% Pivotal stake. Pivotal says it will use its new funds on R&D, including to create offerings tailored for various verticals.
- Pivotal had Q1 revenue of $83M (+56% Y/Y) and an op. loss of $58M. Re/code reported last November Pivotal is mulling an early-2016 IPO. It now looks as if Pivotal (with some outside help) will be staying private for a while longer.
Wed, Apr. 20, 12:45 PM
Wed, Apr. 20, 9:15 AM
Tue, Apr. 19, 5:39 PM
Tue, Apr. 19, 4:30 PM
- VMware (NYSE:VMW) has jumped 4.1% after growing revenue and beating expectations in its Q1 report, along with authorizing at $1.2B buyback.
- License revenues dipped slightly but increased 1% when considered in constant currency.
- Revenue breakout: License, $572M (down 0.7%); Services, $1.02B (up 8.8%).
- "We continue to see momentum across our portfolio of growth products and businesses, including NSX, Virtual SAN and End-User Computing," says CEO Pat Gelsinger.
- Operating cash flows were $720M; free cash flows were $679M. Cash and equivalents were $8.25B, and unearned revenues at $4.98B, as of quarter's end.
- Conference call to come at 5 p.m ET.
- Press Release
- Now read Don't Believe Everything You Read About Cloud Adoption »
VMware, Inc. provides the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. Its virtualization infrastructure solutions, which include a suite of products designed to deliver a... More
Industry: Technical & System Software
Country: United States