VMware (NYSE:VMW)
Even though the business has agreed to be acquired by Broadcom (NASDAQ:AVGO), investors will be poring through VMware’s results for signs of a slowdown in growth, said investment firm Monness, Crespi, Hardt on Monday. VMware (NYSE:VMW) is scheduled to announce second-quarter earnings on Thursday.
Analyst Brian White, who has a buy rating and a price target of $136 on VMware (NYSE:VMW), noted that the company offers a “unique value proposition” and has remained profitable, partly because it has a robust subscription and software-as-a-service profile. VMware is traded under the ticker symbol “VMW.”
White anticipates that income from subscriptions and software-as-a-service would climb by 22% yearly to $944 million, while revenue from licenses will fall by 17% year over year to $612 million. In connection with this, White mentioned that it is anticipated that deferred revenue and billings will increase by 6% and 1%, respectively, to $10.97B and $3.3B.
The impending acquisition by Broadcom (NASDAQ:AVGO), which is trying to expand its software capabilities, will receive greater attention than it has previously received. White stated that as a result of the planned purchase, it is likely that VMware would not offer advice. However, the disclosed results “may be utilized as an extra data point to monitor the financial impact this economic crisis is having on the business software sector,” White added.
Broadcom (NASDAQ:AVGO) announced in May that it would purchase VMware (NYSE:VMW) for $61 billion in cash and equity.
At the upcoming VMW Explore conference, which VMW is planning to host, the company will likely provide fresh updates on the status of its business.
At the beginning of this month, the investment firm Paulson & Co. announced that during the second quarter of this year, it had made many other adjustments to its portfolio besides purchasing 500,000 shares of VMW
Featured Image: Megapixl @Michaelvi
Author Shariq Khan 
