S&P 500 (NYSE:SPY) component BMC Software (NASDAQ:BMC) will unveil its latest earnings on Wednesday, October 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 analyst estimate is for net income of 70 cents per share, a decline of 6.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 74 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 70 cents during the last month. For the year, analysts are projecting profit of $2.82 per share, a rise of 2.5% from last year.
Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at net income of 47 cents per share against a mean estimate of profit of 60 cents. The company topped expectations in the fourth quarter of the last fiscal year.
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A Look Back: In the first quarter, profit fell 43.5% to $54.1 million (33 cents a share) from $95.7 million (53 cents a share) the year earlier, missing analyst expectations. Revenue rose 0.4% to $504.4 million from $502.4 million.
Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $3.96 (10.6%), from $37.51 to $41.47. The stock price saw one of its best stretches over the last year between August 1, 2012 and August 10, 2012, when shares rose for eight straight days, increasing 10% (+$3.74) 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.
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.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.8% in the second quarter of the last fiscal year, 1.5% in the third quarter of the last fiscal year and 0.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 42.3% in the fourth quarter of the last fiscal year and then again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.53 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.
Wall St. Revenue Expectations: Analysts predict a decline of 0.8% in revenue from the year-earlier quarter to $552 million.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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