Summit Research Expects VMware To Report 'Inline 4Q But With Less Visibility'

Richard Williams of Summit Research commented in a note over the weekend that

will report an inline fourth quarter with an earnings per share of $1.07 (against $1.06 for consensus) on revenue of $1.6941 billion. “We saw mixed signals from our channel checks this quarter, and software vendors are posting inline results to modestly below expectations,” Williams wrote. Williams will be looking for three key themes during the company's quarterly results. First, Horizon and NSX will be important metrics and need to show share growth. Second, large deal count will be an “interesting signal” of high-end participation. Finally, cash flow is expected to improve to $761 million in the quarter from $604 million last quarter and $688 million a year ago. Shares are Hold rated with an $88 price target.