CA Technologies Earnings: Here’s Everything You Need to Know

CA Technologies (NASDAQ:CA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up after hours.

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CA Technologies Earnings Cheat Sheet

Results: Net income decreased -4.56% to $251 million (63 cents per diluted share) in the quarter versus a net gain of $263 million in the year-earlier quarter.

Revenue: Decreased 4.99% to $1.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CA Technologies reported adjusted net income of 63 cents per share. By that measure, the company beat the mean analyst estimate of $0.61. It beat the average revenue estimate of $1.17 billion.

Quoting Management: CA Technologies CEO Mike Gregoire said, “While we are encouraged by improvements we saw in the business during our third quarter, including increased demand for our Nimsoft, Infrastructure Management and Service Virtualization offerings, we know that we need to do more to accelerate innovation, gain market share and better differentiate our solutions in the marketplace.

We also know there is room for improvement in our cost of sales and in the speed and intensity with which we pursue our objectives,” he continued. “Over the next few months we will perform a detailed diagnostic of where we are, and lay out a plan on how to achieve our strategic and financial goals.”

Key Stats:

Revenue increased 4.17% from $1.15 billion in the previous quarter. Net income increased 13.06% from $222 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.62 to a profit $0.58. For the current year, the average estimate has moved down from a profit of $2.48 to a profit of $2.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)