CA Second Quarter Earnings Approach

S&P 500 (NYSE:SPY) component CA (NASDAQ:CA) will unveil its latest earnings on Thursday, October 25, 2012. CA is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.

CA Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 55 cents per share, a rise of 7.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 55 cents during the last month. Analysts are projecting profit to rise by 9.3% versus last year to $2.34.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at net income of 63 cents a share versus the estimate of profit of 56 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between September 21, 2012 and October 19, 2012, the stock price dropped $2.26 (-8.4%), from $26.77 to $24.51. 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 18.2% (+$4.09) over that span. It saw one of its worst periods between September 18, 2012 and September 26, 2012 when shares fell for seven straight days, dropping 5% (-$1.35) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.08 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.5% in revenue from the year-earlier quarter to $1.17 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 11.8% in the fourth quarter of the last fiscal year and 8.4% in the third quarter of the last fiscal year before falling in the first quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 10 analysts surveyed giving that rating.

A Look Back: In the first quarter, profit fell 0.4% to $240 million (51 cents a share) from $241 million (47 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.5% to $1.15 billion from $1.16 billion.

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

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