CA, Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CA, Inc. (NASDAQ:CA) will unveil its latest earnings on Wednesday, July 20, 2011. CA, Inc. 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 net income of 47 cents per share, a rise of 2.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 47 cents during the last month. For the year, analysts are projecting profit of $2.03 per share, a rise of 5.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 48 cents per share against a mean estimate of profit of 46 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.15 billion in revenue this quarter, a rise of 5.5% from the year ago quarter. Analysts are forecasting total revenue of $4.79 billion for the year, a rise of 8.1% from last year’s revenue of $4.43 billion.

Analyst Ratings: seven out of 13 analysts surveyed (53.8%) have a buy rating on CA.. This is below the mean analyst rating of 10 competitors, which average 60% buy ratings.

Key Stats:

A year-over-year revenue decrease in the fourth quarter of the last fiscal year snaps a streak of three consecutive quarters of revenue increases. Revenue fell 3.6% in the fourth quarter of the last fiscal year and rose 3.3%in the third quarter of the last fiscal year, 3.5% in the second quarter of the last fiscal year and 3.9% in the first quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 19.3%. The quarter with the biggest boost was the most recent quarter, which saw an 86.1% surge.

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).

Stock Price Performance: During April 18, 2011 to July 14, 2011, the stock price had fallen $1.44 (-6.1%) from $23.55 to $22.11. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 5.8% (+$1.26) 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, falling 8.2% (-$1.93) over that span. Shares are down $2.24 (-9.2%) year to date.

(Source: Xignite Financials)

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