BMC Software Earnings: Top Expectations

S&P 500 (NYSE:SPY) component BMC Software Inc. (NASDAQ:BMC) reported its results for the second 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 $97.8 million (61 cents per share) vs. $114.7 million (65 cents per share) a year earlier. This is a decline of 14.7% from the year-earlier quarter.

Revenue: Fell 1.5% to $548.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BMC Software Inc. reported adjusted net income of 88 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. It fell short of the average revenue estimate of $561.4 million.

Quoting Management: “BMC Software is clearly making progress in capturing growth in important markets, and we are seeing positive trends in a number of key areas,” said Bob Beauchamp, BMC’s chairman and chief executive officer. “Product development success and overall innovation remain high – we are very excited about yesterday’s launch of BMC MyIT. Our ESM sales force has stabilized and is positioned for improved productivity. We remain highly profitable and financially strong. Management is making the changes necessary to focus even more sharply on our customers and our markets.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 10.8%.

The company’s net income has now fallen for three straight quarters. In the first quarter, net income fell 43.5% from the year earlier, while the figure fell 42.3% in the fourth quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 47 cents versus a mean estimate of net income of 60 cents per share.

Looking Forward: The average estimate for the third quarter remains unchanged at 84 cents a share. The average estimate for the fiscal year has remained at $2.82 per share.

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

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