$VMW Q3 2022 Earnings Report
$VMW Short
VMware is an American cloud computing and virtualization technology company very similar to Splunk. They were recently acquired by Broadcom for about 60 billion Dollars however, the deal still has to go through which has left many employees hanging. Due to this acquisition, there has been a large number of speculations that there are going to be big price increases in the customer’s contracts which has led many people to make new contracts with them before they announce their new prices. However, there have also been big changes in the process of the clients they are willing to accept. What used to be a couple-day process can now take weeks or even months to complete when it comes to signing new contracts. This has led to a huge backlog and missed profits while also making new clients cancel their deals or have potential clients look at other options. Overall, the company is in a big mess right now as it is trying to transition into the Broadcom system. What analysts have to say: Taking a look at what analysts have to say about the stock right now, ten investment analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. VMware last announced its quarterly earnings results in May and it missed all of the estimates by big amounts. Going into this quarter, both their EPS and revenue are expected to grow and I find it very hard for them to do that, especially considering how much they missed them last quarter and how expenses have only gone up since then.
Other companies: Some of the biggest stocks in this sector that recently came out with a report were Splunk and Now. They both revised their estimates for the year to a lower number which didn’t make investors too happy and it caused their stock to drop by large amounts. Why I could be wrong: VMware has missed the estimates only once except last quarter which makes the chances of them also beating it this quarter very high. What investors will mostly be looking at is if they can keep their forecast for the rest of the year. Since they are also being acquired by another company, many people could hold off from selling their shares. Market Cap:51,214,042,821 P/E Ratio:31.32 Initial reaction:Long Researched reaction:Short CEO: Time:After close Estimate:-3%