BMC Bucks Downtrend … Again

For the second time this week, BMC sidestepped a big sell-off in the stock market on optimism ahead of its quarterly results.

The company didn’t disappoint. After the close on Wednesday, BMC reported earnings of $76 million, or 35 cents a share, 6 cents better than expected and up nearly 500% from the year-ago quarter. The big gain was driven largely by cost-cutting measures; operating expenses fell 15% in the quarter, from $409 million to $349 million. Sales rose 3.3% to $408 million, $8 million better than Wall Street analysts were looking for. BMC’s forward guidance was largely in line with forecasts, but left a little room for disappointment.

CEO Bob Beauchamp boasted that “the IT market is moving straight into BMC’s sweet spot, which is Business Service Management.”

Still, with the stock up 3.7% on Wednesday and 8% for the week, investors took the opportunity to take some profits, sending the stock 1.7% lower in after-hours trading.

Also after the close, Novellus raised its sales forecast, saying it expects $400-$410 million in June quarter sales. Analysts were looking for revenues of $378 million. Novellus shares jumped 5% in late trading.

The broader market tumbled once again Wednesday, as an early rally gave way to selling on more hawkish comments from Federal Reserve officials.

The Nasdaq lost 11 to 2152, the S&P 500 fell 7 to 1256, and the Dow lost 71 to 10,930. Volume declined to 2.56 billion shares on the NYSE, and 1.96 billion on the Nasdaq. Decliners led 19-12 on the NYSE, and 16-13 on the Nasdaq. Downside volume was 69% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 29-101 on the NYSE, and 72-97 on the Nasdaq.

The IPO of LoopNet had a strong debut, surging 25%.

Cray fell 8% on a reverse stock split.

Corning lost 8% on weak LCD sales at AU Optronics .