CA Profit Rises 15%; Outlook Mostly Above Expectations
May 11 2016 - 5:04PM
Dow Jones News
By Tess Stynes
CA Inc. issued guidance for its recently started fiscal year
that mostly topped expectations, and the business-software company
reported its earnings rose 15% in the latest quarter.
The New York company's shares rose 4.1% to $31.20 in recent
after-hours trading as per-share earnings, excluding certain
one-time items, and revenue beat analysts' estimates.
For the new fiscal year ending in March of 2017, CA forecast
adjusted per-share earnings from continuing operations of $2.51 to
$2.56 and revenue of $4.04 billion to $4.08 billion. Analysts
polled by Thomson Reuters expected per-share profit of $2.49 and
revenue of $4.05 billion.
The information-technology company has been transitioning from
its roots creating software for mainframe computers into higher
growth products that help large enterprises create Web services and
mobile apps and tools to integrate them into their IT networks.
CA, also known as CA Technologies, has expanded its capabilities
with a string of acquisitions last year, including its roughly $480
million deal for Rally Software Development Corp., its acquisition
of automated software testing company Grid Tools Ltd. and its
purchase of network security firm Xceedium Inc.
Still, CA's mainframe segment remains the biggest to its
topline. In the lastest quarter, mainframe revenue fell 4.4% to
$547 million. Enterprise solutions segment revenue increased 3.3%
to $380 million.
For the period ended March 31, CA reported a profit of $174
million, or 42 cents a share, up from $151 million, or 34 cents a
share, a year earlier. Excluding share-based compensation and other
items, per-share earnings rose to 60 cents from 56 cents. Revenue
decreased 1.4% to $1.01 billion--though excluding currency effects,
it rose 1%.
Analysts polled by Thomson Reuters expected per-share profit of
57 cents and revenue of $990 million.
Total bookings declined to $960 million from $1.07 billion a
year earlier, mostly as the result of lower renewals.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
May 11, 2016 16:49 ET (20:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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