VMware Inc. Q3 Profit Decreases, misses estimates

Zoom Video Communications Slips 7% On Lower Q3 Profit, FY23 Outlook

Shares of Zoom Video Communications, Inc. (ZM) are down 7 percent on Tuesday’s trading after the company reported lower profit in the third quarter and reduced its outlook for the year ahead.

The company’s net income fell to $48.4 million or $0.16 per share in the third quarter from $340.3 million or $1.11 per share in the same period last year. Excluding items, income was $323.2 million or $1.07 per share, down from $338.4 million or $1.11 per share in the year-ago quarter.

Looking ahead, the company lowered its revenue outlook for full year 2023. It now expects revenue between $4.37 billion and $4.38 billion and adjusted EPS between $3.91 and $3.94. Earlier, Zoom expected total revenue between $4.39 billion and $4.40 billion and adjusted EPS between $3.66 and $3.69.

Currently at $74.24, the stock has traded between $70.43 and $235.97 during the past 52 weeks.

Seven-Year Note Auction Attracts Below Average Demand

Finishing off this week’s series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Tuesday that this month’s auction of $35 billion worth of seven-year notes attracted below average demand.

The seven-year note auction drew a high yield of 3.890 percent and a bid-to-cover ratio of 2.33.

The Treasury also sold $35 billion worth of seven-year notes last month, drawing a high yield of 4.027 percent and a bid-to-cover ratio of 2.43.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous seven-year note auctions had an average bid-to-cover ratio of 2.50.

On Monday, the Treasury revealed this month’s auction of $42 billion worth of two-year notes attracted slightly above average demand, while this month’s auction of $43 billion worth of five-year notes attracted slightly below average demand.

Autodesk Inc. Q3 Profit Increases, Inline With Estimates

Autodesk Inc. (ADSK) revealed a profit for its third quarter that increased from last year in line with the Street estimates.

The company’s earnings came in at $198 million, or $0.91 per share. This compares with $137 million, or $0.62 per share, in last year’s third quarter.

Excluding items, Autodesk Inc. reported adjusted earnings of $465 million or $1.70 per share for the period.

Analysts on average had expected the company to earn $1.70 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 13.3% to $1.28 billion from $1.13 billion last year.

Autodesk Inc. earnings at a glance (GAAP) :

-Earnings (Q3): $198 Mln. vs. $137 Mln. last year.
-EPS (Q3): $0.91 vs. $0.62 last year.
-Analyst Estimate: $1.70
-Revenue (Q3): $1.28 Bln vs. $1.13 Bln last year.

-Guidance:
Next quarter EPS guidance: $1.77 – $1.83
Next quarter revenue guidance: $1,303 – $1,318 Mln
Full year EPS guidance: $6.56 – $6.62
Full year revenue guidance: $4,990 – $5,005 Mln

European Economics Preview: UK CPI & PPI Data Due

Consumer and producer prices from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK consumer and factory gate prices for October. Consumer price inflation is expected to advance to 10.7 percent from 10.1 percent in September. Factory gate inflation is seen at 14.6 percent versus 15.9 percent in September.

At 3.00 am ET, the Czech Statistical Office is scheduled to issue producer prices for October. Producer price inflation is forecast to ease to 24.4 percent from 25.8 percent in September.

At 4.00 am ET, the European Central Bank publishes Financial Stability Review.

In the meantime, Italy’s Istat is slated to issue final consumer and harmonized prices for October. Consumer price inflation is forecast to rise to 11.9 percent, as initially estimated, from 8.9 percent in September.

At 4.30 am ET, UK house price data is due from the Office for National Statistics.

Oil Futures Settle Notably Higher

Crude oil prices rose sharply on Tuesday, lifted by Saudi Arabia’s statement that OPEC+ would stick with output cuts and could likely take steps to balance the market.

Saudi Arabian Energy Minister Prince Abulaziz bin Salman had on Monday denied a report that the oil cartel was considering boosting output. He said that there was no basis for the reports and that the OPEC+ decision on October 5 to cut production would continue to remain until the end of 2023.

The development helped outweigh concerns about a likely drop in demand due to global recession and a surge in Covid-19 cases in China.

A weaker dollar contributed as well to the uptick in crude oil prices.

West Texas Intermediate Crude oil futures for December rose to $82.36 a barrel around noon, and were up $1.07 or 1.34% at $81.11 a little while ago.

Brent crude futures were up $1.05 or about 1.2% at $88.50 a barrel.

The UAE has denied it was holding talks on changing the latest OPEC+ agreement, and Kuwait too said there were no talks on an output increase.

The OPEC and its allies including Russia, are scheduled to meet on December 4 to discuss their output strategy.

VMware Inc. Q3 Profit Decreases, misses estimates

VMware Inc. (VMW) reported a profit for third quarter that decreased from the same period last year and missed the Street estimates.

The company’s earnings totaled $231 million, or $0.54 per share. This compares with $398 million, or $0.94 per share, in last year’s third quarter.

Excluding items, VMware Inc. reported adjusted earnings of $626 million or $1.47 per share for the period.

Analysts on average had expected the company to earn $1.58 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 0.6% to $3.21 billion from $3.19 billion last year.

VMware Inc. earnings at a glance (GAAP) :

-Earnings (Q3): $231 Mln. vs. $398 Mln. last year.
-EPS (Q3): $0.54 vs. $0.94 last year.
-Analyst Estimates: $1.58
-Revenue (Q3): $3.21 Bln vs. $3.19 Bln last year.