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INVESTING IDEAS - page 3

Discover and validate investing ideas with valuation models and charts.

Tsakos Energy Navigation Q3 Earnings: Is TNP Cheap at 4.4x Forward P/E?

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Tsakos Energy Navigation Limited (NYSE:TNP) is scheduled to report Q3 earnings results prior to the open of the market in New York on Tuesday, November 26, 2019. Management will hold a conference call at 9:00 am EST — details here.

The company is expected to report earnings of -$0.13/share on revenue of $112.8 million. The consensus earnings per share (EPS) of -$0.13/share is based on a poll of 2 analysts. For the same quarter last year when the company reported earnings of -$0.28/share.

The revenue forecast of $112.8 million based on a poll of 1 analyst implies a year-over-year (YoY) growth of 21.8%. Last year the company reported $92.596 million in revenue for the quarter.

Expected to report EPS of -$0.13/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $112.76 $92.60 21.8%
EPS -$0.13 -$0.28 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, missed 6 quarters, and met expectations 1 quarter.

What are your expectations from Tsakos Energy Navigation for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$0.13 -$0.14 NM Missed
Q1, 2019 -$0.05 $0.01 NM Beat
Q4, 2018 $0.05 -$0.08 NM Missed
Q3, 2018 -$0.21 -$0.28 NM Missed
Q2, 2018 -$0.18 -$0.18 NM Meet
Q1, 2018 -$0.15 -$0.21 NM Missed
Q4, 2017 -$0.04 -$0.05 NM Missed
Q3, 2017 -$0.09 -$0.12 NM Missed

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Tsakos Energy Navigation’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -2.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-09-06 $3.04 $2.97 -2.3% Decline
2019-06-06 $3.01 $3.15 4.7% Increase
2019-03-29 $3.08 $3.10 0.6% Increase
2018-11-30 $3.38 $3.37 -0.3% Decline

Fundamentals And Technical Analysis

Tsakos Energy Navigation is currently trading at $3.60/share, up 2.0% for the day. The company is trading at approximately 90.0% of its 52-week high of $4/share. The company’s stock price is up 21.2% since the last earnings report and up 6.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 51.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -4.7x and a forward P/E multiple of 4.4x. Tsakos Energy Navigation’s current share price also implies a price-to-book (P/B) multiple of 0.2x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $3.60
P/E Ratio -4.7x
P/E Ratio (Fwd) 4.4x
PEG Ratio 0.1
Total Debt to Capital (%) 79.6%
Levered Free Cash Flow $80.801 million
Enterprise Value / EBITDA 8.6x

Source: Finbox

Company Profile: Tsakos Energy Navigation Limited

Tsakos Energy Navigation Limited is a small-cap stock with a market capitalization of $316.3 million and a total enterprise value of $1.792 billion. The company operates in the Energy sector and Oil, Gas & Consumable Fuels industry.

Tsakos Energy Navigation Limited provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national, major, and other independent oil companies and refiners under long, medium, and short-term charters.

As of April 2, 2019, it operated a fleet of 64 double-hull vessels, including 59 conventional tankers, 2 liquefied natural gas carriers, and 3 suezmax DP2 shuttle tankers with dynamic positioning technology. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001.

Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.

iClick Interactive Asia (ICLK) Q3 2019 Earnings: What Can You Expect?

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iClick Interactive Asia Group Limited (NASDAQGM:ICLK) is scheduled to report Q3 earnings results at 8:00 a.m. ET on November 26, 2019. You can find more information about the conference call here.

The company is expected to report earnings of -$0.03/share on revenue of $52.308 million. The consensus earnings per share (EPS) of -$0.03/share is based on a poll of 2 analysts and represents a decline over the same quarter last year when the company reported earnings of -$0.02/share.

The revenue forecast of $52.308 million based on a poll of 2 analysts implies a year-over-year (YoY) growth of 22.8%. Last year the company reported $42.587 million in revenue for the quarter.

Expected to report EPS of -$0.03/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $52.31 $42.59 22.8%
EPS -$0.03 -$0.02 NM

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 6 tracked quarters, missed 1 quarter, and met expectations 2 quarters. What are your expectations from iClick Interactive Asia for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$0.04 -$0.02 NM Beat
Q1, 2019 -$0.04 -$0.02 NM Beat
Q4, 2018 -$0.03 -$0.02 NM Beat
Q3, 2018 -$0.02 -$0.02 NM Meet
Q2, 2018 -$0.02 -$0.02 NM Meet
Q4, 2017 -$0.03 -$0.13 NM Missed

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to iClick Interactive Asia’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-26 $3.17 $3.16 -0.3% Decline
2019-05-29 $3.71 $3.75 1.1% Increase
2019-03-25 $4.35 $3.82 -12.2% Decline
2018-11-28 $3.73 $3.76 0.8% Increase

Fundamentals And Technical Analysis

iClick Interactive Asia is currently trading at $3.18/share, down -4.2% for the day. The company is trading at approximately 53.9% of its 52-week high of $5.90/share. The company’s stock price is up 0.6% since the last earnings report and down -3.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 58.57 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -5.3x and a forward P/E multiple of -30.9x. iClick Interactive Asia’s current share price also implies a price-to-book (P/B) multiple of 1.8x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $3.18
P/E Ratio -5.3x
P/E Ratio (Fwd) -30.9x
PEG Ratio 0.1
Total Debt to Capital (%) 24.0%
Levered Free Cash Flow zero
Enterprise Value / EBITDA -7.9x

Source: Finbox

Company Profile: iClick Interactive Asia Group Limited

iClick Interactive Asia Group Limited is a micro-cap stock with a market capitalization of $189.4 million and a total enterprise value of $209.7 million. The company operates in the Communication Services sector and Media industry.

iClick Interactive Asia Group Limited, together with its subsidiaries, provides online marketing services in the People’s Republic of China, Hong Kong, and internationally. The company offers iAudience, an audience identification solution that allows marketers to search, identify, and customize their targeted audience to generate or boost brand awareness; iAccess and iActivation, an audience engagement and activation solutions, respectively tailored for brand awareness-driven and performance-driven campaigns; iExpress, the lite version of iAccess solution for small and medium-sized enterprises; iNsights, an online campaign results monitoring and measurement solution; and iExperience, a content creation solution.

It also provides mobile marketing solutions, which are non-search engine marketing solutions designed to identify, engage, and activate audience on mobile apps, and monitor and measure the results of online marketing activities on such channels; and other solutions that focuses on identifying, engaging, and activating audience on non-mobile app content distribution channels comprising PC banner displays, PC video advertisements, and search engine marketing.

In addition, the company offers enterprise solutions, which help clients collate information from different consumer touchpoints both offline and online, and integrate them into a single data management platform to drive sales and marketing decisions to new retail, online education, real estate, and other sectors. It sells its solutions by entering into sales contracts with entities or marketing agencies, including marketing campaign contracts.

The company was formerly known as Optimix Media Asia Limited and changed its name to iClick Interactive Asia Group Limited in March 2017. iClick Interactive Asia Group Limited was founded in 2009 and is headquartered in Quarry Bay, Hong Kong.

HP Q4 Earnings: Is HPQ Cheap at 7.0x Price/EPS?

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HP Inc. (NYSE:HPQ) is scheduled to report Q4 earnings results on November 26, 2019 at 1:30 PM PST. You can find more information about the conference call here.

The company is expected to report earnings of $0.58/share on revenue of $15.322 billion. The consensus earnings per share (EPS) of $0.58/share is based on a poll of 14 analysts and represents a growth of 7.4% over the same quarter last year when the company reported earnings of $0.54/share.

The revenue forecast of $15.322 billion based on a poll of 12 analysts implies a year-over-year (YoY) decline of -0.3%. Last year the company reported $15.366 billion in revenue for the quarter.

Expected to report EPS growth of $0.04/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $15,322.00 $15,366.00 -0.3%
EPS $0.58 $0.54 7.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters and met expectations 4 quarters. What are your expectations from HP for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.55 $0.58 6.0% Beat
Q2, 2019 $0.51 $0.53 3.9% Beat
Q1, 2019 $0.52 $0.52 0.0% Meet
Q4, 2018 $0.54 $0.54 0.0% Meet
Q3, 2018 $0.51 $0.52 2.1% Beat
Q2, 2018 $0.48 $0.48 0.0% Meet
Q1, 2018 $0.42 $0.48 14.3% Beat
Q4, 2017 $0.44 $0.44 0.0% Meet

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to HP’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 31, 2019, the stock price reacted by falling by -6.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-22 $18.96 $17.81 -6.1% Decline
2019-05-23 $19.20 $20.03 4.3% Increase
2019-02-27 $23.90 $19.73 -17.4% Decline
2018-11-29 $23.43 $23 -1.8% Decline

Fundamentals And Technical Analysis

HP is currently trading at $20.14/share, up 1.0% for the day. The company is trading at approximately 78.3% of its 52-week high of $25.72/share. The company’s stock price is up 13.1% since the last earnings report and up 0.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 71.34 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 7.0x and a forward P/E multiple of 8.8x. HP’s current share price also implies a price-to-book (P/B) multiple of -26.1x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date July 31, 2019
Stock Price (Current) $20.14
P/E Ratio 7.0x
P/E Ratio (Fwd) 8.8x
PEG Ratio -2.4
Total Debt to Capital (%) 14.6%
Levered Free Cash Flow $4.372 billion
Enterprise Value / EBITDA 5.9x

Source: Finbox

Company Profile: HP Inc.

HP Inc. is a large-cap stock with a market capitalization of $29.549 billion and a total enterprise value of $29.688 billion. The company operates in the Information Technology sector and Technology Hardware, Storage & Peripherals industry.

HP Inc. provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments.

The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial mobility devices, retail point-of-sale systems, displays, and other related accessories, software, support, and services.

The Printing segment provides consumer and commercial printer hardware, supplies, solutions, and services, as well as scanning devices.

The Corporate Investments segment includes HP Labs and business incubation projects. It serves individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors.

HP Inc. has a strategic alliance with Siemens AG; and collaboration with SmileDirectClub. The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015.

HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.

Titan Machinery Q3 Earnings: Can TITN Hit Its $0.48 EPS Target?

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Titan Machinery Inc. (NASDAQGS:TITN) is scheduled to release financial results for the third quarter ended October 31, 2019, on Tuesday, November 26, 2019. The report will be followed by an investor conference call at 7:30 a.m. CT (8:30 a.m. ET).

The company is expected to report earnings of $0.48/share on revenue of $371.6 million. The consensus earnings per share (EPS) of $0.48/share is based on a poll of 4 analysts and represents a decline of -2.0% over the same quarter last year when the company reported earnings of $0.49/share.

The revenue forecast of $371.6 million based on a poll of 4 analysts implies a year-over-year (YoY) growth of 2.2%. Last year the company reported $363.6 million in revenue for the quarter.

Expected to report EPS decline of -$0.01/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $371.65 $363.65 2.2%
EPS $0.48 $0.49 -2.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters. What are your expectations from Titan Machinery for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.33 $0.31 -4.6% Missed
Q1, 2020 -$0.05 $0.02 NM Beat
Q4, 2019 $0.01 -$0.04 NM Missed
Q3, 2019 $0.36 $0.49 36.1% Beat
Q2, 2019 $0.12 $0.28 133.3% Beat
Q1, 2019 -$0.07 -$0.07 NM Beat
Q4, 2018 -$0.15 -$0.10 NM Beat
Q3, 2018 $0.08 $0.20 150.0% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Titan Machinery’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 31, 2019, the stock price reacted by falling by -11.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-29 $16.93 $15.06 -11.0% Decline
2019-05-30 $15.08 $16.72 10.9% Increase
2019-03-27 $19.69 $15.61 -20.7% Decline
2018-11-29 $14.18 $17.53 23.6% Increase

Fundamentals And Technical Analysis

Titan Machinery is currently trading at $18.02/share, up 1.5% for the day. The company is trading at approximately 82.4% of its 52-week high of $21.88/share. The company’s stock price is up 19.7% since the last earnings report and up 1.5% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 66.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 28.5x and a forward P/E multiple of 21.0x. Titan Machinery’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date July 31, 2019
Stock Price (Current) $18.02
P/E Ratio 28.5x
P/E Ratio (Fwd) 21.0x
PEG Ratio 1.1
Total Debt to Capital (%) 60.6%
Levered Free Cash Flow $35.842 million
Enterprise Value / EBITDA 17.5x

Source: Finbox

Company Profile: Titan Machinery Inc.

Titan Machinery Inc. is a small-cap stock with a market capitalization of $390.3 million and a total enterprise value of $942.1 million. The company operates in the Industrials sector and Trading Companies & Distributors industry.

Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores. It operates through three segments: Agriculture, Construction, and International. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company’s construction equipment comprises of heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and mining operations equipment.

It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services.

The company operates in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, Serbia, and Ukraine, Europe.

Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.

DICK’S Sporting Goods Q3 Earnings Preview: DKS Up 15.6% Since Last Report

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DICK’S Sporting Goods, Inc. (NYSE:DKS) is scheduled to report Q3 earnings results on Tuesday, November 26, 2019, at 10:00 AM ET. You can find more information about the conference call here.

The company is expected to report earnings of $0.38/share on revenue of $1.913 billion. The consensus earnings per share (EPS) of $0.38/share is based on a poll of 25 analysts and represents a decline of -2.6% over the same quarter last year when the company reported earnings of $0.39/share.

The revenue forecast of $1.913 billion based on a poll of 19 analysts implies a year-over-year (YoY) growth of 3.0%. Last year the company reported $1.857 billion in revenue for the quarter.

Expected to report EPS decline of -$0.01/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $1,912.91 $1,857.27 3.0%
EPS $0.38 $0.39 -2.6%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from DICK’S Sporting Goods for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.21 $1.26 4.1% Beat
Q1, 2020 $0.59 $0.62 5.1% Beat
Q4, 2019 $1.06 $1.07 0.9% Beat
Q3, 2019 $0.26 $0.39 50.5% Beat
Q2, 2019 $1.06 $1.20 13.2% Beat
Q1, 2019 $0.45 $0.59 31.1% Beat
Q4, 2018 $1.20 $1.22 1.8% Beat
Q3, 2018 $0.26 $0.30 15.4% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to DICK’S Sporting Goods’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 3, 2019, the stock price reacted by falling by -1.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-22 $32.97 $32.37 -1.8% Decline
2019-05-29 $35.78 $34.25 -4.3% Decline
2019-03-12 $38.89 $35.81 -7.9% Decline
2018-11-28 $36.33 $35.52 -2.2% Decline

Fundamentals And Technical Analysis

DICK’S Sporting Goods is currently trading at $39.37/share, down -0.1% for the day. The company is trading at approximately 94.8% of its 52-week high of $41.53/share. The company’s stock price is up 21.6% since the last earnings report and down -5.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 47.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 11.5x and a forward P/E multiple of 11.6x. DICK’S Sporting Goods’s current share price also implies a price-to-book (P/B) multiple of 2.0x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date August 3, 2019
Stock Price (Current) $39.37
P/E Ratio 11.5x
P/E Ratio (Fwd) 11.6x
PEG Ratio -8.6
Total Debt to Capital (%) 49.3%
Levered Free Cash Flow $156.9 million
Enterprise Value / EBITDA 10.2x

Source: Finbox

Company Profile: DICK’S Sporting Goods, Inc.

DICK’S Sporting Goods, Inc. is a mid-cap stock with a market capitalization of $3.562 billion and a total enterprise value of $6.902 billion. The company operates in the Consumer Discretionary sector and Specialty Retail industry.

DICK’S Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories.

The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce Websites, as well as DICK’S Team Sports HQ, a youth sports digital platform that offers free league management services, mobile apps, free league management services, communications and live scorekeeping, custom uniforms and fan wear, and access to donations and sponsorships.

As of August 3, 2019, it operated 727 DICK’S Sporting Goods stores in 47 states, 95 Golf Galaxy stores in 32 states, and 35 Field & Stream stores in 16 states. The company was formerly known as Dick’s Clothing and Sporting Goods, Inc. and changed its name to DICK’S Sporting Goods, Inc. in April 1999.

DICK’S Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

VMware Q3 Earnings Preview: VMW Up 19.3% Since Last Report

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VMware, Inc. (NYSE:VMW) is scheduled to report Q3 earnings results on November 26, 2019 at 01:30 PM PST. You can find more information about the conference call here.

The company is expected to report earnings of $1.42/share on revenue of $2.405 billion. The consensus earnings per share (EPS) of $1.42/share is based on a poll of 29 analysts and represents a decline of -9.0% over the same quarter last year when the company reported earnings of $1.56/share.

The revenue forecast of $2.405 billion based on a poll of 24 analysts implies a year-over-year (YoY) growth of 9.3%. Last year the company reported $2.2 billion in revenue for the quarter.

Expected to report EPS decline of -$0.14/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $2,405.20 $2,200.00 9.3%
EPS $1.42 $1.56 -9.0%

Earnings Call Trends

Management has a perfect record over the last 8 tracked quarters of exceeding earnings guidance. What are your expectations from VMware for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.55 $1.60 3.2% Beat
Q1, 2020 $1.27 $1.32 3.9% Beat
Q4, 2019 $1.87 $1.98 5.9% Beat
Q3, 2019 $1.50 $1.56 4.0% Beat
Q2, 2019 $1.49 $1.54 3.4% Beat
Q1, 2019 $1.14 $1.26 10.5% Beat
Q4, 2018 $1.62 $1.68 3.7% Beat
Q3, 2018 $1.27 $1.34 5.5% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to VMware’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 2, 2019, the stock price reacted by falling by -9.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-22 $148.09 $133.42 -9.9% Decline
2019-05-30 $191.27 $176.98 -7.5% Decline
2019-02-28 $176.01 $178.20 1.2% Increase
2018-11-29 $159.76 $167.34 4.7% Increase

Fundamentals And Technical Analysis

VMware is currently trading at $168.69/share, up 1.7% for the day. The company is trading at approximately 82% of its 52-week high of $206.80/share. The company’s stock price is up 26.4% since the last earnings report and up 0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 56.66 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 10.8x and a forward P/E multiple of 24.9x.

VMware’s current share price also implies a price-to-book (P/B) multiple of 13.0x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date August 2, 2019
Stock Price (Current) $168.69
P/E Ratio 10.8x
P/E Ratio (Fwd) 24.9x
PEG Ratio 2.2
Total Debt to Capital (%) 6.8%
Levered Free Cash Flow $3.471 billion
Enterprise Value / EBITDA 27.7x

Source: Finbox

Company Profile: VMware, Inc.

VMware, Inc. is a large-cap stock with a market capitalization of $67.776 billion and a total enterprise value of $69.809 billion. The company operates in the Information Technology sector and Software industry.

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally.

The company offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect, secure, and operate their network consistently within and across the data center, cloud, and network edges; and storage and availability products, including data storage and protection options.

In addition, the company offers VMware Cloud Foundation, a platform that brings together its compute, storage, and networking technologies into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds; and VMware Pulse IoT Center, an Internet of Things device management and monitoring solution. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; and end-user computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management.

The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution; and Pivotal.

VMware, Inc. was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.

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