CA Inc. Earnings Cheat Sheet: Beats Forecasts

S&P 500 (NYSE:SPY) component CA Inc. (NASDAQ:CA) reported net income above Wall Street’s expectations for the first quarter. CA, Inc. is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.

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CA Earnings Cheat Sheet for the First Quarter

Results: Net income for CA Inc. rose to $241 million (47 cents per share) vs. $217 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 11.1% from the year earlier quarter.

Revenue: Rose 9% to $1.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CA reported adjusted net income of 55 cents per share. By that measure, the company beat the mean estimate of 47 cents per share. Analysts were expecting revenue of $1.15 billion.

Quoting Management: “We had a solid start to fiscal year 2012,” said Bill McCracken, chief executive officer of CA Technologies. “First quarter results show improved operational efficiencies, which were reflected in non-GAAP operating margin improvements- and double-digit growth in non-GAAP earnings per share. “We continued to build our product and services portfolio with the acquisition of Base Technologies, a privately-held consulting firm focused on the management of IT assets, and our agreement to acquire Interactive TKO, a leading provider of service simulation solutions for developing applications in composite and cloud environments. We also delivered on our commitment to return cash to shareholders, repurchasing $150 million in common stock during the quarter and distributing $25 million in dividends, an increase of 25 percent.

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 4 cents in the second quarter of the last fiscal year.

Net income has increased 17.6% year over year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 86.1% from the year earlier quarter.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Novell, Inc. (NASDAQ:NOVL), Red Hat, Inc. (NYSE:RHT), Hewlett-Packard Company (NYSE:HPQ), BMC Software, Inc. (NASDAQ:BMC), Quest Software, Inc. (NASDAQ:QSFT), Symantec Corporation (NASDAQ:SYMC), and Compuware Corporation (NASDAQ:CPWR).

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(Source: Xignite Financials)

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