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What: Shares of BMC Software plunged today by as much as 10% after the company reported earnings.
So what: Revenue in the quarter was $580 million, which led to non-GAAP earnings per share of $0.99. Both top- and bottom-line results were shy of analyst forecasts, which called for revenue of $587.4 million and $1.01 per share in profit. CFO Steve Solcher said the company had lower-than-expected bookings in two of its key business units.
Now what: BMC Software also reduced its guidance for the full year. The company expects non-GAAP earnings per share of $3.35 to $3.45, down from its prior range of $3.49 to $3.59 per share and below the Street's expectations of $3.56 per share. Cowen also downgraded its rating on BMC Software from "outperform" to "neutral" after the results.
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The article Why BMC Software Shares Plunged originally appeared on Fool.com.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of BMC Software. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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