Morningstar

What Dell's Move Means for VMWare

We may lower our fair value estimate on VMWare once the $11 billion dividend is paid to reflect the major hit to its cash balance.

Brian Colello, CFA Jul 2, 2018

Dell Technologies announced on July 2 a concrete plan to bring the company public and simplify its structure. The plan entails eliminating Dell’s Class V tracking stock (herein described by the stock's ticker, DVMT) with the help of its controlling stake in

We also note that VMWare reiterated its financial guidance for its second fiscal quarter, while updating its fiscal 2019 earnings per share guidance. The firm now expects GAAP EPS for fiscal 2019 in the range of $5.43-$5.73 as well as non-GAAP EPS of approximately $5.99 per share.

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About the Author

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Brian Colello, CFA

Strategist

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Brian Colello, CPA, is a strategist, AM Technology, for Morningstar*. He covers semiconductor and hardware companies and supports our equity research-linked Indexes business. Colello was a Director of Technology Equity Research before assuming his current role in 2023.

Before joining Morningstar in 2008, Colello worked in public accounting for KPMG and served as a manager in corporate finance for BMG Music, a subsidiary of Bertelsmann AG.

Colello holds a bachelor’s degree in accounting from Bucknell University. He also holds a master’s degree in business administration from Wake Forest University’s Babcock School of Business. He is also a Certified Public Accountant.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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