BMC Software Beats Analyst Estimates on EPS

BMC Software (NAS: BMC) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), BMC Software met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins improved, net margins increased.

Revenue details
BMC Software logged revenue of $548.2 million. The 14 analysts polled by S&P Capital IQ foresaw sales of $556.0 million. Sales were 1.5% higher than the prior-year quarter's $539.9 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.93. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.82 per share on the same basis. GAAP EPS of $0.71 for Q3 were 18% higher than the prior-year quarter's $0.60 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.9%, 90 basis points worse than the prior-year quarter. Operating margin was 29.5%, 300 basis points better than the prior-year quarter. Net margin was 21.9%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $569.3 million. On the bottom line, the average EPS estimate is $0.83.

Next year's average estimate for revenue is $2.19 billion. The average EPS estimate is $3.24.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 276 members out of 296 rating the stock outperform, and 20 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give BMC Software a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BMC Software is outperform, with an average price target of $42.46.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of BMC Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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