VMware likely to see slowdown in growth with Broadcom deal, conference in focus
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VMware (NYSE:VMW) is slated to report second-quarter results on Thursday and though the company has agreed to be acquired by Broadcom (NASDAQ:AVGO), investors will be parsing through VMware's results for signs of a slowdown in growth, investment firm Monness, Crespi, Hardt said on Monday.
Analyst Brian White, who has a buy rating and a $136 price target on VMware (VMW), noted that the company offers a "unique value proposition" and has remained profitable, due in part to its strong subscription and software-as-a-service profile. 
White said he expects subscription and software-as-a-service revenue to rise 22% year-over-year to $944M, while license revenue falls 17% year-over-year to $612M. In conjunction, White also noted that deferred revenue and billings are expected to rise 6% and 1% to $10.97B and $3.3B, respectively. 
Additional attention will be placed on the pending acquisition by Broadcom (AVGO), which is looking to expand its software offerings. White said as a result of the pending deal, it's likely that VMware will not issue guidance, but the reported results "can be used as an additional data point to monitor the financial impact this economic downturn is having on the enterprise software market."
In May, Broadcom (AVGO) announced that it was acquiring VMware (VMW) for $61B in cash and stock.
VMware (VMW) is slated to hold its annual VMware Explore conference where it may give additional updates on the state of its business. 
Earlier this month, hedge fund Paulson & Co. disclosed that it had bought 500,000 shares of VMware (VMW) during the second-quarter, while also making several other changes to its portfolio.