Tech Stocks Investors are Considering After Earnings
BMC Software Inc. (NASDAQ:BMC) reported net income above Wall Street’s expectations for the third quarter. Net income for the application software company rose to $119.9 million (71 cents per share) vs. $109.1 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 9.9% from the year earlier quarter. Revenue rose 1.5% to $548.2 million from the year earlier quarter. BMC Software Inc. reported adjusted net income of 93 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. Analysts were expecting revenue of $556 million.
“Our strategy for success and market leadership is proven, as evidenced by large enterprises standardizing on BMC’s universal management platform, the strong demand for our cloud management and Software-as-a-Service solutions, the ongoing expansion of our strategic alliances and the number of multi-product wins across both our businesses,” said Bob Beauchamp, BMC’s chairman and chief executive officer. “We continue to advance our position through key internal and external investments in technology and talent, while simultaneously making solid progress in addressing previously identified ESM sales capacity issues. The results of these efforts are encouraging and should positively impact our performance in fiscal 2013.”
Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Red Hat, Inc. (NYSE:RHT), CA, Inc. (NASDAQ:CA), Novell, Inc. (NASDAQ:NOVL), Intl. Business Machines Corp. (NYSE:IBM), Quest Software, Inc. (NASDAQ:QSFT), Compuware Corporation (NASDAQ:CPWR), SAP AG (NYSE:SAP), and Hewlett-Packard Company (NYSE:HPQ).
Brightpoint Inc. (NASDAQ:CELL) as the electronics wholesaler saw profit fall in the fourth quarter. Net income for Brightpoint Inc. fell to $15.1 million (22 cents per share) vs. $15.9 million (23 cents per share) a year earlier. This is a decline of 5.1% from the year earlier quarter. Revenue rose 38.9% to $1.56 billion from the year earlier quarter. Brightpoint Inc. reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $1.39 billion.
“I am pleased that we were able to deliver strong financial results for the fourth quarter and throughout 2011,” said Vince Donargo, BrightPoint’s Chief Financial Officer and Treasurer. “During 2011 we experienced substantial growth in our distribution business. Our ROIC of 13 percent in 2011 is within our long-term targeted range of 12 to 15 percent. I am proud of our team’s ability to deliver ROTC of 43 percent in 2011, which exceeds our targeted long-term range of 35 to 40 percent. Both of these financial metrics reflect our disciplined approach to managing our balance sheet and our overall business.”
Competitors to Watch: TESSCO Technologies, Inc. (NASDAQ:TESS), InfoSonics Corporation (NASDAQ:IFON), Ingram Micro Inc. (NYSE:IM), Arrow Electronics, Inc. (NYSE:ARW), Avnet, Inc. (NYSE:AVT), ADDvantage Tech. Group, Inc. (NASDAQ:AEY), Motorola Mobility Hldgs. Inc (NYSE:MMI), Tech Data Corporation (NASDAQ:TECD), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Research in Motion (NASDAQ:RIMM), Sprint (NYSE:S), Verizon (NYSE:VZ), AT&T (NYSE:T), Nokia (NYSE:NOK), and SYNNEX Corporation (NYSE:SNX).
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