Tags: CA | technology | cloud | software

CA Technologies Continues Steady Growth

By Tim Plaehn   |   Tuesday, 13 Sep 2011 03:22 PM

Information technology software provider CA Technologies (CA) has put together an enviable history of steady revenue and profit growth. The nature of CA's business makes it highly probable the company can continue its record of consistent growth. The question is whether the growth rate will be faster or slower.

In business for almost 40 years, CA provides software solutions to customers in 47 countries. Products and services range from mainframe software systems to cloud computing. According to company literature, CA specializes in managing and securing complex corporate IT systems.

The most recent earnings report for CA is from the company's 2012 fiscal year first quarter. For the quarter, CA reported revenue of $1.16 billion, up from $1.07 billion a year earlier. Non-GAAP earnings per share were 55 cents for the quarter, up 22 percent from 45 cents. CA books a lot of non-cash amortization and charges. The company uses the non-GAAP earnings numbers to give a more accurate picture of company results.

Selling future results

The future of CA's financial results can be divined from the orders booked during a quarter. In the first quarter bookings were up 18 percent to $865 million. Included in the bookings were 10 large, over-$10 million contracts, a nice improvement over the six large contracts signed in the first quarter of fiscal 2011.

Management has issued guidance for the full fiscal year, with revenues projected to approach $5 billion. GAAP earnings per share are forecast to be approximately $1.83 and the non-GAAP earnings range is centered at $2.17 per share. The consensus Wall Street estimate for full year earnings is $2.17 per share as well.

Recent analyst opinions on CA are almost universally positive. RBC reiterated an outperform rating. The Needham Group repeated their buy rating. And Oppenheimer upgraded CA to outperform from perform. Target prices are approximately 50 percent above the current CA stock value. The company reports next on Oct. 20.

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
Companies
Information technology software provider CA Technologies (CA) has put together an enviable history of steady revenue and profit growth. The nature of CA's business makes it highly probable the company can continue its record of consistent growth. The question is whether the...
CA,technology,cloud,software
319
2011-22-13
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved