Collins Stewart Raises Estimates on VMware (VMW) Following Strong Q1 Results

Collins Stewart is maintaining its Neutral rating and $92 price target on shares VMware (NYSE: VMW) as the company posted outstanding Q1 results.

The company posted its Q1 results with an EPS of $0.48 and revenue of $844 million. Operating margin was also up to 29.9%, while VNW raised its revenue growth outlook by 350 bps at the midpoint to 24-28%.

The upside was mostly driven by better than expected booking which was up 44% Y/Y, but the firm notes that international market also played a key role as they grew 40$ Y/Y and exceeded 50% of the company's total revenues in the quarter, a first ever.

As a result the firm is raising its 2011 and 2012 EPS estimate by $0.15 to $1.95 and $2.30.

For more ratings news on VMware click here and for the rating history of VMware click here.

Shares of VMware closed at $85.97 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Morgan Stanley Starts Sampo Oyj (SAMPO:FH) (SAXPY) at Equalweight
• JPMorgan Downgrades Pearson PLC (PSON:LN) (PSO) to Neutral
• Clear Street Starts One Stop (OSS) at Buy