For Immediate Release
Chicago, IL – July 31, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include BMC Inc. (
BMC
- Analyst Report
)
, IBM Inc. (
IBM
- Analyst Report
)
, Hewlett-Packard Company (
HPQ
- Analyst Report
)
, EMC Corp. (
EMC
- Analyst Report
)
and CA Inc. (
CA
- Analyst Report
)
.
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Earnings Preview: BMC
BMC Inc. (
BMC
- Analyst Report
)
is scheduled to announce its first quarter 2013 results on July 31, 2012 and we do not see much variation in the analysts’ estimates at this point.
Third Quarter Overview
The company reported fourth quarter 2012 earnings per share of 59 cents, lagging the Zacks Consensus Estimate of 66 cents.
Total revenue in the reported quarter was $564.7 million, up 0.4% year over year. While none of the segments performed well in the quarter, the SaaS business did see higher recurring revenue and total bookings.
Operating income dropped significantly despite flattish revenue growth because expenses increased a considerable extent and the company was not able to implement efficient cost-control measures.
Fiscal 2013 is not expected to be much better, as the company expects non-GAAP diluted earnings per share in the range of $3.49 to $3.59, up from $2.67. BMC expects cash flow from operations to be between $800.0 million and $850.0 million for fiscal 2013, which at the midpoint represents a mere 3% increase from fiscal 2012.
Agreement of Analysts
Out of the seven analysts providing estimates for the first quarter, none revised their estimates over the last 30 days. There were also no estimate revisions for fiscal 2013 and 2014 estimates over the last 30 days. However, estimates have moved down over the last 90 days, following the company’s weak fourth quarter results and 2013 outlook.
The lack of estimate revisions primarily reflects the absence of any major catalysts over the last 30 days. Consequently, the analysts are also maintaining their outlook for the first quarter of 2013.
Some of the analysts are of the opinion that although competition is gradually intensifying in the SaaS space, BMC’s focus on its Service segment has enabled it to regain some market share. This apart, the BMC RemedyForce is gaining momentum and is expected to generate additional revenue.
Moreover, the company is slowly expanding its customer base both as a result of market expansion and at the expense of competitors. Australia’s Monash University selected BMC Software’s Business Service Management (BSM) platform in order to support its information and communication technology (ICT) services.
On the other hand, rationalization of expenditure by different government and private customers may weigh down the overall business volumes of the company. The current economic turmoil may also affect the business going forward.
Magnitude of Estimate Revisions
The magnitude of revisions is therefore minimal, with no movement over the last 30 days. However, estimates have moved down since the company reported its fourth quarter results.
Overall, estimates for the upcoming quarter have dropped 3 cents to 60 cents over the last 90 days. Again, estimates for fiscal 2013 and 2014 have gone down by 6 cents and 20 cents to $2.91 and $3.22, respectively, over the last 90 days.
Recommendation
BMC reported unexciting fourth quarter results but guidance was modest for fiscal 2013. However, the company witnessed substantial cloud bookings.
This apart, industry experts believe that the BMC version of the SaaS-based ITSM offering is not gaining traction. But new deal wins by the company and its customers provide the much needed incentive for the investors.
Moreover, we are a bit apprehensive about the growing competition from big players such as IBM Inc. (
IBM
- Analyst Report
)
, Hewlett-Packard Company (
HPQ
- Analyst Report
)
, EMC Corp. (
EMC
- Analyst Report
)
and CA Inc. (
CA
- Analyst Report
)
, which bundle hardware and software offerings.
BMC currently holds a Zacks #3 Rank, which implies a short-term Hold rating.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
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For Immediate Release
Chicago, IL – July 31, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include BMC Inc. ( BMC - Analyst Report ) , IBM Inc. ( IBM - Analyst Report ) , Hewlett-Packard Company ( HPQ - Analyst Report ) , EMC Corp. ( EMC - Analyst Report ) and CA Inc. ( CA - Analyst Report ) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Earnings Preview: BMC
BMC Inc. ( BMC - Analyst Report ) is scheduled to announce its first quarter 2013 results on July 31, 2012 and we do not see much variation in the analysts’ estimates at this point.
Third Quarter Overview
The company reported fourth quarter 2012 earnings per share of 59 cents, lagging the Zacks Consensus Estimate of 66 cents.
Total revenue in the reported quarter was $564.7 million, up 0.4% year over year. While none of the segments performed well in the quarter, the SaaS business did see higher recurring revenue and total bookings.
Operating income dropped significantly despite flattish revenue growth because expenses increased a considerable extent and the company was not able to implement efficient cost-control measures.
Fiscal 2013 is not expected to be much better, as the company expects non-GAAP diluted earnings per share in the range of $3.49 to $3.59, up from $2.67. BMC expects cash flow from operations to be between $800.0 million and $850.0 million for fiscal 2013, which at the midpoint represents a mere 3% increase from fiscal 2012.
Agreement of Analysts
Out of the seven analysts providing estimates for the first quarter, none revised their estimates over the last 30 days. There were also no estimate revisions for fiscal 2013 and 2014 estimates over the last 30 days. However, estimates have moved down over the last 90 days, following the company’s weak fourth quarter results and 2013 outlook.
The lack of estimate revisions primarily reflects the absence of any major catalysts over the last 30 days. Consequently, the analysts are also maintaining their outlook for the first quarter of 2013.
Some of the analysts are of the opinion that although competition is gradually intensifying in the SaaS space, BMC’s focus on its Service segment has enabled it to regain some market share. This apart, the BMC RemedyForce is gaining momentum and is expected to generate additional revenue.
Moreover, the company is slowly expanding its customer base both as a result of market expansion and at the expense of competitors. Australia’s Monash University selected BMC Software’s Business Service Management (BSM) platform in order to support its information and communication technology (ICT) services.
On the other hand, rationalization of expenditure by different government and private customers may weigh down the overall business volumes of the company. The current economic turmoil may also affect the business going forward.
Magnitude of Estimate Revisions
The magnitude of revisions is therefore minimal, with no movement over the last 30 days. However, estimates have moved down since the company reported its fourth quarter results.
Overall, estimates for the upcoming quarter have dropped 3 cents to 60 cents over the last 90 days. Again, estimates for fiscal 2013 and 2014 have gone down by 6 cents and 20 cents to $2.91 and $3.22, respectively, over the last 90 days.
Recommendation
BMC reported unexciting fourth quarter results but guidance was modest for fiscal 2013. However, the company witnessed substantial cloud bookings.
This apart, industry experts believe that the BMC version of the SaaS-based ITSM offering is not gaining traction. But new deal wins by the company and its customers provide the much needed incentive for the investors.
Moreover, we are a bit apprehensive about the growing competition from big players such as IBM Inc. ( IBM - Analyst Report ) , Hewlett-Packard Company ( HPQ - Analyst Report ) , EMC Corp. ( EMC - Analyst Report ) and CA Inc. ( CA - Analyst Report ) , which bundle hardware and software offerings.
BMC currently holds a Zacks #3 Rank, which implies a short-term Hold rating.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Read the full reports :
Analyst Report on BMC
Analyst Report on IBM
Analyst Report on HPQ
Analyst Report on EMC
Analyst Report on CA