CA Inc. Fiscal Third-Quarter Earnings Edge Higher on Lower Expenses
January 26 2016 - 5:13PM
Dow Jones News
By Tess Stynes
CA Inc. (CA) said earnings edged higher in the latest reporting
quarter, as lower expenses offset a decline in the
information-technology company's revenue.
New York-based CA's share price rose 4.7% to $28.11 in recent
after-hours trading, as the company's fiscal third-quarter share
earnings, excluding certain one-time items, and revenue beat
expectations.
For the period ended Dec. 31, CA reported a profit of $223
million, or 53 cents a share, up from $222 million, or 50 cents a
share, a year earlier. Excluding stock-based compensation and other
items, per-share earnings fell to 63 cents from 67 cents. Revenue
decreased 5.2% to $1.03 billion, though excluding currency
fluctuations, revenue fell 1%.
Analysts polled by Thomson Reuters had expected adjusted
per-share profit of 58 cents and revenue of $1 billion.
The company's expenses before interest and taxes declined
4.1%.
Bookings rose 16% to $1,242 billion. Excluding currency impacts,
the growth was 23%.
Also known as CA Technologies, the former Computer Associates
makes software for mainframe computers as well as cloud, hybrid and
mobile applications. The company also has been focusing on systems
management, application development and security technology.
CA last year in July acquired Rally Software Development Corp.,
which added a cloud-based platform for business software
application developers, and IT security company Xceedium Inc. in
August.
The third-quarter results benefited from recent acquisitions,
increased booking renewals and improved sales execution, Chief
Executive Mike Gregoire said in prepared remarks on Tuesday. "We
feel that we are near an inflection point in the business," he
said, adding the company affirmed its 2016 outlook and medium-term
guidance.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
January 26, 2016 16:58 ET (21:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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