The 10-second takeaway
For the quarter ended Sep. 30 (Q2), BMC Software met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted.
Margins dropped across the board.
BMC Software logged revenue of $548.2 million. The 13 analysts polled by S&P Capital IQ expected a top line of $552.6 million on the same basis. GAAP reported sales were 1.5% lower than the prior-year quarter's $556.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.88 per share. GAAP EPS of $0.61 for Q2 were 6.2% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.0%, 150 basis points worse than the prior-year quarter. Operating margin was 25.2%, 370 basis points worse than the prior-year quarter. Net margin was 17.8%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $587.2 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $2.25 billion. The average EPS estimate is $3.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 324 members out of 342 rating the stock outperform, and 18 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 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 $43.67.
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