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Mon, Oct. 31, 1:33 PM
- Last week: VMware +3%; above-consensus Q3 registered
- Last week: Citi raises VMware target 20%, upgrades to Buy
- Ittai Kidron, moving from Market perform prior, attributes VMware's public cloud partnerships with Amazon AWS and IBM, license bookings strength, hybrid-cloud positioning and other initiatives to the call.
- Price target set at $90 (current price $78.05).
- VMware (VMW +0.6%) shares are higher by nearly 7% since posting Q3 results last Wednesday.
Thu, Oct. 27, 9:13 AM
- From $79 to $95 (current price $76.85) on VMware's positive Q3 report.
- Analyst Walter Pritchard: "We believe shares are poised for multiple expansion as growth stabilizes at this accelerated level and investors appreciate VMW's position has improved vis-a-vis public cloud."
- Rated Neutral previously.
- VMware (NYSE:VMW) shares +4% pre-market.
Wed, Oct. 26, 6:54 PM
- Results – revenue $1.78B (+6.6% Y/Y, $20M above estimates), EPS $1.14 ($0.04 above estimates), net income $485M (vs. $433M Y/Y), operating income $592M (+12% Y/Y), operating cash flow $620M, free cash flow $590M
- Segment revenues – License $691M (vs. $681 Y/Y), Software maintenance $947M (vs. $863M Y/Y), Professional services $140M (vs. $128M Y/Y)
- VMware (NYSE:VMW) CEO Pat Gelsinger: "Our very good third-quarter financial results reflect VMware's strength in delivering strategic value to our customers. We are helping customers run any application across their private, public and hybrid clouds with our new Cross-Cloud Architecture™, the industry's most complete and capable hybrid cloud offering."
- Recently (October 13): Amazon AWS, VMware cloud partnership confirmed [updated]
- Conference call
- Earnings slides
- Press release
Wed, Oct. 26, 4:18 PM
Tue, Oct. 25, 5:35 PM
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Thu, Oct. 13, 3:51 PM
- The pairing was expected.
- Though a press conference is scheduled this afternoon to formally disclose the arrangement, TechCrunch notes VMware posted the announcement slightly early on its company blog.
- A cloud service running on AWS (AMZN -0.6%) and revolving around VMware's (VMW -0.2%) vSphere platform titled "VMware Cloud on AWS" to be offered.
- Will be operated, managed and sold by VMware as an on-demand, elastically scalable solution.
- Full availability slated for mid-2017, with betas to begin earlier in the year.
- Further details
- Update (5:12PM ET): Official press release
Wed, Oct. 5, 12:10 PM
- Thought to be disclosed next Thursday in San Francisco and similar to a deal VMware (NYSE:VMW) and IBM struck earlier this year.
- Enabling VMware software to run on internal servers and Amazon (AMZN +0.9%) public cloud infrastructure suggested.
- Once considered rivals, such a move would signify a substantial shift from VMware's prior outlook on Amazon.
- VMware shares higher by 2.8% on the news.
Thu, Sep. 8, 5:25 PM
- Following July reinstatements at Morgan Stanley and Citigroup, J.P. Morgan resumes coverage on VMware (NYSE:VMW) with an Overweight rating and $90 price target (current price $74.34).
- Analyst Mark Murphy: "Our most recent survey work foreshadowed an improvement prior to Q2 earnings as VMware partners grew their practices in the double digits, representing an uptick from prior quarters of single-digit growth."
- Further notes an approximately 35% lower valuation than competitors of around 10x EV/OCF, indicating it the most appealing in the space.
- VMware share tracking details following Dell, EMC deal finalization
Wed, Sep. 7, 3:04 AM
- The final piece in Dell's complex $62B acquisition of EMC is set to fall into place today, when an unusual tracking stock with a notional face value of more than $16B starts trading in New York to help finance its takeover.
- The new Class V shares will represent some 65% of its stake in VMware (NYSE:VMW) - though holders will have no direct rights in the company and Dell will have the right to switch the underlying assets the shares represent in future.
- Will the largest acquisition ever in tech represent the creation of a new giant or the management of a declining sector of the industry?
Tue, Aug. 30, 8:04 AM
- VMware (NYSE:VMW) +1.1% premarket after Suntrust upgraded the stock to Buy from Neutral and raised its price target to $92 from $64.
- The firm feels VMware has effectively diversified beyond its server virtualization roots and expects the company's revenue to bottom this year and accelerate through the end of the decade, driven by NSX and vSAN.
Mon, Aug. 29, 8:38 AM
- VMware (NYSE:VMW) is launching the Cloud Foundation, a package of its existing software that's becoming available for use on public clouds.
- The idea is to let admins use familiar tools to control server, storage, and networking resources even in public clouds, not just private clouds in on-premises data centers.
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.