BMC Software First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component BMC Software (NASDAQ:BMC) will unveil its latest earnings on Tuesday, July 31, 2012. 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.

BMC Software Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 60 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 60 cents during the last month. Analysts are projecting profit to rise by 5.8% versus last year to $2.91.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 67 cents per share against a mean estimate of net income of 66 cents per share. In the third quarter of the last fiscal year, it missed forecasts by one cent.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 42.3% to $70.7 million (44 cents a share) from $122.5 million (67 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 0.4% to $564.7 million from $562.2 million.

Stock Price Performance: Between May 29, 2012 and July 25, 2012, the stock price had fallen $4.73 (-10.8%), from $43.86 to $39.13. The stock price saw one of its best stretches over the last year between April 13, 2012 and April 23, 2012, when shares rose for seven straight days, increasing 6.2% (+$2.42) over that span. It saw one of its worst periods between June 29, 2012 and July 12, 2012 when shares fell for nine straight days, dropping 8.5% (-$3.61) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 3.9% in revenue from the year-earlier quarter to $522 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9% in the first quarter of the last fiscal year, 10.8% in the second quarter of the last fiscal year and 1.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 9.9% in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.54 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.43 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 18.8% to $2.18 billion while liabilities rose by 10.1% to $1.41 billion.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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

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