The 10-second takeaway
For the quarter ended March 31 (Q4), BMC Software missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins grew, operating margins shrank, net margins grew.
BMC Software logged revenue of $568.6 million. The 11 analysts polled by S&P Capital IQ expected revenue of $592.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.87. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.93 per share. Non-GAAP EPS of $0.87 for Q4 were 18% higher than the prior-year quarter's $0.74 per share. GAAP EPS of $0.50 for Q4 were 16% higher than the prior-year quarter's $0.43 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 74.1%, 240 basis points better than the prior-year quarter. Operating margin was 18.6%, 20 basis points worse than the prior-year quarter. Net margin was 12.8%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $532.2 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $2.33 billion. The average EPS estimate is $3.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 323 members out of 345 rating the stock outperform, and 22 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give BMC Software a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BMC Software is hold, with an average price target of $44.58.
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