CA Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CA, Inc. (NASDAQ:CA) will unveil its latest earnings on Thursday, May 10, 2012. CA is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.

CA, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 49 cents per share, a rise of 2.1% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 10.9% versus last year to $2.13.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 9 cents, reporting net income of 60 cents per share against a mean estimate of profit of 51 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 5.3% in revenue from the year-earlier quarter to $1.19 billion.

Analyst Ratings: Analysts seem relatively indifferent about CA with seven of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 31.5% to $263 million (54 cents a share) from $200 million (39 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.4% to $1.26 billion from $1.17 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 11.1% in the first quarter and 6.3% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 6.6% in the first quarter and 8.1% in the second quarter before climbing again in the third quarter.

Stock Price Performance: Between April 5, 2012 and May 4, 2012, the stock price dropped 97 cents (-3.6%), from $27.26 to $26.29. The stock price saw one of its best stretches over the last year between January 23, 2012 and February 3, 2012, when shares rose for 10 straight days, increasing 18.3% (+$4.07) over that span. It saw one of its worst periods between May 31, 2011 and June 13, 2011 when shares fell for 10 straight days, dropping 8.2% (-$1.90) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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