VMWare Inc. Stock Buy Recommendation Reiterated (VMW)
- ACTIVE STOCK TRADERS: Get trading ideas for stocks under $10 for less than $6/week. Start with a 14-Day Free Trial.
- The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 20.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- VMW's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VMW has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
- VMWARE INC's earnings per share declined by 12.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VMWARE INC increased its bottom line by earning $1.67 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $1.67).
- The gross profit margin for VMWARE INC is currently very high, coming in at 84.20%. Regardless of VMW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VMW's net profit margin of 13.80% is significantly lower than the same period one year prior.
- The change in net income from the same quarter one year ago has exceeded that of the Software industry average, but is less than that of the S&P 500. The net income has decreased by 11.7% when compared to the same quarter one year ago, dropping from $177.54 million to $156.77 million.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts