BMC Software (BMC) posted 20 cents, vs. 14 cents, first-quarter earnings per share. Prudential raised its target price and estimate.
Analyst Michael Turits says that first-quarter EPS of 20 cents topped his 13 cents estimate driven by the revenue upside and cost cuts. He notes that revenue of $348 million substantially beat his forecast of $334 million.
Turits says he is encouraged by the first quarter numbers, but he is staying cautious given the company's uneven execution history; he's waiting to see more evidence of sustainable growth before believing that BMC shares are finally out of the "value trap."
He raised his 2005 EPS estimate to 93 cents from 86 cents; this is the middle of management's raised guidance. He reiterated a neutral opinion, but hiked the target price to $21 from $16.