Shares of CA Inc. sank Friday after the business software maker's fiscal fourth-quarter income missed analyst estimates.

The stock fell $1.52, or 7 percent, to $20.36 in afternoon trading amid a downturn in the broader market. Shares have traded between $16.12 and $24.15 over the past year.

CA said late Thursday that it earned 34 cents per share in the first three months of the year excluding one-time items. Analysts polled by Thomson Reuters expected profit of 36 cents per share.

In a client note, Jefferies & Co. analyst Katherine Egbert said profit margins were hurt because of investments the company made to expand into new markets and technology. She lowered her share price target to $25 from $27.

But she kept a "Buy" rating on the stock. "We like CA mainly because it's cheap," Egbert wrote.

She also noted the company's guidance topped analyst estimates.

For the fiscal year, CA projected adjusted net income of $1.87 to $1.95 per share and revenue of $4.5 billion to $4.6 billion. Analysts forecast income of $1.84 per share on $4.4 billion in revenue.