Why BMC Software Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of BMC Software (NASDAQ: BMC  ) 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.

Interested in more info on BMC Software? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2223009, ~/Articles/ArticleHandler.aspx, 7/22/2014 3:32:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement