VMW reports after the close:
VMware Seen Posting Solid 4Q Results
Friday January 25, 3:42 pm ET
Analysts Expect Solid 4th-Quarter Results, Upbeat Tone From VMware Amid Strong Demand
NEW YORK (AP) -- Analysts expect VMware Inc. to post solid fourth-quarter results Monday, though competition is looming for the virtualization software maker from Microsoft Corp., which is expanding its presence in the market.
Virtualization allows a computer to act like multiple machines, each with its own operating system and software. VMware, which went public last August in the one of the technology sector's most anticipated initial offerings since Google Inc.'s in 2004, dominates the market.
Analysts, on average, are expecting VMware to post earnings of 24 cents per share on revenue of $417.4 million, according to a poll by Thomson Financial.
RBC Capital Markets analyst Thomas Curlin expects VMware to beat Wall Street's consensus estimate.
"Management has yet to issue any formal guidance and we expect a similar approach on the call," he said in a client note. "The tone, however, should be positive on customer demand and defiant with respect to competitive alternatives."
Jefferies analyst Katherine Egbert said 2007 "seemed to close strongly" for the company, with a strong pipeline of new and renewed orders. She also noted a growing list of "small but meaningful acquisitions," including virtualization services companies Foedus, Thinstall and Sciant.
Shares fell 20 cents to $80 in afternoon trading. The stock has traded between $51.50 and $125.25 since its initial public offering.
Data storage company EMC Corp. holds a majority stake in VMware.
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