The investment bank forecasts total revenue of $ 3.23 billion, up 5.1% year over year, in line with market consensus estimates of + 5% year over year. Morgan Stanley is forecasting EBIT of $ 1.09 billion (33.6% margin) to round FY21 to $ 3.74 billion (32% margin) according to projections and consensus.

“Aside from improving ROI, however, stock performance is likely to be tied to two other factors: 1) Margins – Preliminary projections suggest a margin compression of 4% -points YoY in FY22, putting a lot of pressure on short-term EPS growth becomes; and 2) Management – With CFO Zane Rowe as interim CEO, VMware’s board of directors is currently looking for a permanent replacement after Pat Gelsinger’s departure. Even with stocks with a P / E of 20x CY22e that trade at a significant discount to the large-cap average of 29x, we balance these uncertainties, ”wrote Keith Weiss, equity analyst at Morgan Stanley.

VMware shares, which were down roughly 8% in 2020, were over …

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