Tags: BMC | Software | Shares | Forecast

BMC Software Shares Fall on Weak Profit Forecast

Monday, 28 Jan 2013 05:53 PM

Shares of BMC Software Inc., whose software helps companies keep their servers up-to-date, fell in extended trading Monday after forecasting fiscal 2013 profit that missed analysts’ estimates amid a slowdown in corporate contracts.

BMC shares were down 6.7 percent at $41.51 in late trading, after closing little changed at $44.48 in New York.

Profit excluding some items will be $3.35 to $3.45 a share for fiscal 2013, which ends in March, the Houston-based company said Monday in a statement. Previously, the company had forecast $3.49 to $3.59 a share. Analysts had anticipated $3.56 on average, according to data compiled by Bloomberg.

BMC had two large contract renewals that were pushed to the March quarter from the December period, crimping results, said Abhey Lamba, an analyst at Mizuho Securities USA Inc.

“BMC underperformed across all metrics for the quarter,” Lamba wrote in a research report. “While the EPS downtick could be due to slipped deals, we believe the extent of the reduction is high.”

The company needs to be “more consistent and disciplined” in the way it secures big contracts, Chief Executive Officer Bob Beauchamp said in the statement. He also said that management is “scrutinizing the entire company to improve our operational discipline.”

BMC kicked off the review after the end of the quarter, said Mark Stouse, a spokesman for BMC.

“It is in line with our normal planning cycle for the new fiscal year,” he said.

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