On January 1, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
BMC has been witnessing rising earnings estimates following
the announcement of decent results in the second quarter of
fiscal 2013 and an encouraging guidance for the year. The company
is benefiting from an uptrend in the mainframe renewal cycleand
the positive seasonality over the next two quarters will continue
to work in its favor.
) zEnterprise EC12 product cycle - which is expected to result in
a capacity expansion - will also result in the renewal of
business transactions going forward.
BMC Software reported fiscal second quarter 2013 results on
November 1, 2013, with non-GAAP net income of 71 cents per share,
up from 69 cents in the year-ago quarter. This non-GAAP net
income also beat the Zacks Consensus Estimate of 70 cents.
Based on its progress, the company also raised its earnings
per share projection for fiscal 2013. BMC expects non-GAAP
diluted earnings per share in the range of $3.49 to $3.59 per
share. On an average, this would represent a 9.0% increase over
The Zacks Consensus Estimate for fiscal 2013 increased 1.4% to
$2.86 per share, as most of the estimates were revised higher
over the last 90 days. Again, for fiscal 2014, more than half of
the estimates were revised higher over the same time frame,
lifting the Zacks Consensus Estimate by 3.25% to $3.17 per
Other Stocks to Consider
Other software stocks that you could consider include
), as both have a Zacks Rank #1 (Strong Buy).
BMC SOFTWARE (BMC): Free Stock Analysis
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INTL BUS MACH (IBM): Free Stock Analysis
NUANCE COMM INC (NUAN): Free Stock Analysis
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