CA Inc. Earnings Cheat Sheet: Powering Ahead

S&P 500 (NYSE:SPY) component CA Inc. (NASDAQ:CA) reported net income above Wall Street’s expectations for the second quarter. CA 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 Second Quarter

Results: Net income for the application software company rose to $236 million (47 cents per share) vs. $222 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 6.3% from the year earlier quarter.

Revenue: Rose 10% to $1.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CA reported adjusted net income of 51 cents per share. By that measure, the company beat the mean estimate of 47 cents per share. Analysts were expecting revenue of $1.19 billion.

Quoting Management: “We achieved our objectives for earnings per share, cash and margin for the second quarter,” said Bill McCracken, chief executive officer, CA Technologies. “However, we were not pleased with one area, new product sales, relative to our expectations. As a result, we have revised our revenue outlook to reflect the shortfall in new product sales and the macroeconomic environment. But we also have raised the bottom end of our earnings per share guidance to reflect continued operational efficiency and discipline.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 11.1% and in the fourth quarter of the last fiscal year, the figure rose 86.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 6.6% to $1.16 billion from the year earlier quarter.

Looking Forward: The average estimate for the third quarter remains unchanged at 54 cents a share. For the fiscal year, the average estimate has moved down from $2.06 a share to $2.05 over the last ninety days.

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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