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VMware will report its earnings after the close of trading on Tuesday. Its an opportunity for investors to learn more about how management sees the risks from the accelerating shift to cloud computing.

Since VMware (ticker: VMW) last disclosed its results on Aug. 22, the companys stock has risen about 14%, which is above the S&P 500s 7% return in the same period.

Here is a snapshot of Wall Streets expectations and some recent history:

On Friday, Barrons suggested the rise of a new technology trend called Kubernetes will accelerate the shift to cloud computing. This may lead to slower demand for on-premises software and equipment, putting VMwares core server-virtualization business at risk over time.

Wall Street analysts are predicting that the company will report fiscal third-quarter adjusted earnings of $1.43 per share and $2.41 billion of revenue, according to FactSet.

On Friday, RBC Capital Markets analyst Matthew Hedberg reiterated his Outperform rating for VMware shares.

We expect VMW to report solid results when it reports 11/26, he wrote. In terms of the demand environment, our reseller survey was generally above FY/19 averages.

Other Wall Street analysts are mixed on VMware. About 53% have ratings of Buy or the equivalent on the stock, while 43% have Hold ratings, according to FactSet. Their average price target for the stock is $174.88, while VMware closed at $168.73 on Monday.

Management has scheduled a conference call for 4:30 p.m. Eastern time on Tuesday to discuss the results with analysts and investors.

Write to Tae Kim at tae.kim@barrons.com

Link:
VMware Reports Earnings Today. Heres What to Expect. - Barron's