What to Expect When VMWare (VMW) Reports Q2 Results
NEW YORK (TheStreet) -- Shares of VMWare (VMW) - Get Report closed up 1.69% to $62.07 on Friday ahead of the company's 2016 second quarter results due out after Monday's market close.
Wall Street is expecting the cloud software and services company to post earnings of 95 cents per share on revenue of $1.68 billion.
During the same quarter last year, the Palo Alto, CA-based company earned 93 cents per share on revenue of $1.52 billion.
MKM Partners maintained its "buy" rating and $70 price target ahead of the results.
Despite challenges, the firm expects license revenues to match consensus estimates of $638 million.
"Positively, VMW could benefit from seasonality. Time is on VMW's side in another way in the sense that growing sales of newer products such as NSX, vSAN and EUC, are offsetting declines in server virtualization, and so as more time goes by, conceivably growth should improve as newer products become a larger percentage of the total," MKM wrote in an analyst note.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VMW