BMC Software Earnings: Misses Estimates

S&P 500 (NYSE:SPY) component BMC Software Inc. (NASDAQ:BMC) reported its results for the first quarter. BMC Software is a software vendor offering an extensive portfolio of software solutions, including mainframe, distributed and virtualized systems, applications, databases, and IT process management functions.

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BMC Software Inc. Earnings Cheat Sheet

Results: Net income for BMC Software Inc. fell to $54.1 million (33 cents per share) vs. $95.7 million (53 cents per share) a year earlier. This is a decline of 43.5% from the year-earlier quarter.

Revenue: Rose 0.4% to $504.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BMC Software Inc. fell short of the mean analyst estimate of 60 cents per share. It fell short of the average revenue estimate of $561.4 million.

Quoting Management: “While the first quarter presented challenges, BMC’s technology and product leadership remains strong,” said Bob Beauchamp, BMC’s chairman and chief executive officer. “Demand for BMC’s products remains high, and our customer value proposition is very attractive to companies seeking competitive advantage and IT cost reduction. Our ESM sales force is gaining experience and tenure, and our MSM business continues to deliver on-target performance. The Company continues to generate strong cash flow, which ensures our balance sheet remains strong and provides us with the ability to return capital to shareholders at a healthy pace. We expect to deliver improved performance over the course of fiscal 2013.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 0.4% to $564.7 million in the fourth quarter of the last fiscal year. The figure rose 1.5% in the third quarter of the last fiscal year from the year earlier and climbed 10.8% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen for two quarters in a row. In the fourth quarter of the last fiscal year, net income fell 42.3% from the year-earlier quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 67 cents versus a mean estimate of net income of 66 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 75 cents a share to 74 cents over the last sixty days. The average estimate for the fiscal year is $2.91 per share, down from $2.97 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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