BMC Software Inc. Earnings: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component BMC Software Inc. (NASDAQ:BMC) reported net income above Wall Street’s expectations for the third 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the application software company rose to $119.9 million (71 cents per share) vs. $109.1 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 9.9% from the year earlier quarter.

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

Actual vs. Wall St. Expectations: BMC Software Inc. reported adjusted net income of 93 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. Analysts were expecting revenue of $556 million.

Quoting Management: “Our strategy for success and market leadership is proven, as evidenced by large enterprises standardizing on BMC’s universal management platform, the strong demand for our cloud management and Software-as-a-Service solutions, the ongoing expansion of our strategic alliances and the number of multi-product wins across both our businesses,” said Bob Beauchamp, BMC’s chairman and chief executive officer. “We continue to advance our position through key internal and external investments in technology and talent, while simultaneously making solid progress in addressing previously identified ESM sales capacity issues. The results of these efforts are encouraging and should positively impact our performance in fiscal 2013.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10.8% to $556.7 million in the second quarter. The figure rose 9% in the first quarter from the year earlier and climbed 14.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the second quarter and by 3 cents in the first quarter.

Net income has increased 0.3% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 9.9% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 71 cents a share to 70 cents over the last thirty days. The average estimate for the fiscal year is $2.74 per share, down from $2.75 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com