CA 2nd-quarter profit is nearly flat as revenue inches lower, but outlook sends shares higher
By APThursday, July 23, 2009
CA 2Q profit nearly flat, but outlook lifts shares
ISLANDIA, N.Y. — Business management software company CA Inc. said Thursday its fiscal first-quarter profit was nearly flat as revenue edged lower. But the company forecast fiscal 2010 sales at the high end of its prior outlook, sending shares up nearly 5 percent in after-hours trading.
For the three months ended June 30, CA earned $195 million, or 37 cents per share, down slightly from a profit of $196 million, or 37 cents per share, in the same period a year earlier. Adjusted earnings totaled 42 cents per share in the latest quarter.
Revenue fell 3 percent to $1.05 billion from $1.09 billion.
Analysts, on average, were expecting a profit of 38 cents per share on sales of $1.03 billion, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.
The company said it expects fiscal 2010 earnings of $1.48 to $1.58 per share. Excluding items, it expects adjusted earnings of $1.60 to $1.70 per share. CA forecast sales of $4.3 billion to $4.4 billion for the year based on current currency exchange rates. CA said this is at the high end of its previously issued guidance range for 2 percent to 4 percent growth.
Analysts are predicting a profit of $1.57 per share on sales of $4.21 billion, on average.
Shares jumped 88 cents, or 4.6 percent, to $20 in after-hours trading, having closed earlier up 37 cents at $19.12.
