BMC Software Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component BMC Software, Inc. (NASDAQ:BMC) will unveil its latest earnings on Wednesday, February 1, 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 net income of 70 cents per share, a rise of 1.4% 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 profit of $2.74 per share, a rise of 27.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at net income of 75 cents per share against an estimate of profit of. The company also topped expectations in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $556 million in revenue this quarter, a rise of 3% from the year ago quarter. Analysts are forecasting total revenue of $2.19 billion for the year, a rise of 5.8% from last year’s revenue of $2.07 billion.

Analyst Ratings: Analysts are bullish on this stock with seven analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the second quarter, profit fell 13% to $114.7 million (65 cents a share) from $131.8 million (73 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 10.8% to $556.7 million from $502.3 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 9% in the first quarter from the year earlier, climbed 14.4% in the fourth quarter of the last fiscal year from the year-ago quarter and 6.3% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit increases. Net income rose 3.1% in the first quarter and 3.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Red Hat, Inc. (NYSE:RHT), CA, Inc. (NASDAQ:CA), Novell, Inc. (NASDAQ:NOVL), Intl. Business Machines Corp. (NYSE:IBM), Quest Software, Inc. (NASDAQ:QSFT), Compuware Corporation (NASDAQ:CPWR), SAP AG (NYSE:SAP), and Hewlett-Packard Company (NYSE:HPQ).

Stock Price Performance: During December 27, 2011 to January 26, 2012, the stock price had risen $2.59 (7.8%) from $33 to $35.59. The stock price saw one of its best stretches over the last year between March 28, 2011 and April 6, 2011 when shares rose for eight-straight days, rising 4.1% (+$2.02) 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, falling 11.2% (-$4.19) over that span.

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

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