DOW JONES NEWSWIRES CA Inc.'s (CA) fiscal third-quarter earnings rose 32% as the business-software maker saw revenue growth in each of its three segments. Shares surged 18% to $26.92 in after-hours trading as the company also unveiled a capital allocation program that targets the return of up to $2.5 billion to shareholders through fiscal year 2014. "Our third-quarter performance and positive operating momentum reinforce our belief that we have the right strategic plan in place," Chief Executive Bill McCracken said. The capital allocation program includes increasing the annual dividend to $1 from 20 cents a share and the authorization to repurchase up to $1.5 billion in common stock, including approximately $230 million remaining under the company's current authorization. CA, which makes software for mainframe and other corporate computers, has been watching its costs carefully in recent years, helping it to post a relatively steady operating profit. For the quarter ended Dec. 31, CA posted a profit of $263 million, or 54 cents a share, up from $200 million, or 39 cents a share, a year earlier. Excluding amortization expense, stock-based compensation and other items, earnings rose to 65 cents a share from 50 cents. Revenue increased 10% to $1.26 billion. Analysts surveyed by Thomson Reuters expected a per-share profit of 54 cents on revenue of $1.21 billion. Operating margin widened to 33% from 29%. Bookings rose 1%, or 2% on a constant currency basis. Subscription and maintenance revenue--the largest contributor to the top line--rose 3.3%, while professional services revenue increased 17% and software fees and other revenue jumped 88%. The company also raised its full-year guidance, now projecting adjusted earnings growth of 11% to 13% in constant currency from its previous view of 7% to 10% growth. It now sees revenue growth of 6% in constant currency, from its prior view of 5% to 6%. -By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com;
