BMC Software Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component BMC Software, Inc. (NASDAQ:BMC) will unveil its latest earnings on Wednesday, May 9, 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 66 cents per share, a rise of 20% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $2.76 per share, a rise of 28.4% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported profit of 69 cents per share versus a mean estimate of net income of 70 cents per share. In the second quarter, the company beat estimates by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $561.4 million in revenue this quarter, a decline of 0.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.17 billion for the year, a rise of 4.8% from last year’s revenue of $2.07 billion.

Analyst Ratings: Analysts are high on the stock, with seven analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the third quarter, profit rose 9.9% to $119.9 million (71 cents a share) from $109.1 million (60 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 1.5% to $548.2 million from $539.9 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 14.4% in the fourth quarter of the last fiscal year, 9% in the first quarter and 10.8% in the second quarter before increasing again in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 0.8% for the last four quarters.

Stock Price Performance: Between March 7, 2012 and May 3, 2012, the stock price had risen $4.49 (12.2%), from $36.95 to $41.44. 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 November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 11.2% (-$4.19) over that span.

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

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