CA Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CA (NASDAQ:CA) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. 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 estimate of analysts is for net income of 57 cents per share, a decline of 5% 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 60 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 57 cents during the last month. Analysts are projecting profit to rise by 6.5% versus last year to $2.28.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 56 cents per share against a mean estimate of net income of 55 cents per share.

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Here’s how CA traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: From December 14, 2012 to January 15, 2013, the stock price rose $1.76 (8.1%), from $21.86 to $23.62. 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.

Wall St. Revenue Expectations: Analysts are projecting a decline of 7.1% in revenue from the year-earlier quarter to $1.17 billion.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.02 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.

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