BMC Boosts Earnings Outlook

BMC Software Inc., whose programs manage corporate computer systems, said its fiscal third-quarter earnings will exceed forecasts, causing its shares to surge as much as 34% in extended trading. The company now expects earnings in its latest quarter to be 20 cents to 22 cents a share, well above the 16-cent average estimate of analysts polled by First Call/Thomson Financial. Both the company and the First Call estimates exclude charges related to acquisitions and includes a one-time gain of 2 cents. BMC said revenue would be between $375 million and $380 million. The company said it won’t provide more information about the better-than-expected performance until it reports results Jan. 18. The announcement, released after the close of regular U.S. trading, comes after two consecutive quarters in which BMC said it would miss analysts’ forecasts by half due to slowing sales of the company’s mainframe computer software. Shares of the Houston-based firm closed up $2 at $15.63 on Nasdaq, then jumped to as high as $21 on the news.