CA Technologies reports 1st-quarter earnings that beat analysts’ expectations
By APWednesday, July 21, 2010
CA Technologies’ 1Q results top Wall Street view
ISLANDIA, N.Y. — Business management software company CA Technologies, formerly known as CA Inc., said Wednesday that its first-quarter net income rose 11 percent thanks to better execution and new revenue from acquisitions.
Net income in the three months ended June 30 rose to $217 million, or 42 cents per share, from $195 million, or 37 cents per share, a year earlier. Excluding items such as amortization and share-based compensation expenses, earnings hit 45 cents per share.
Revenue rose 5 percent to $1.09 billion from $1.04 billion a year earlier, helped by sales of software products obtained through the acquisition of NetQoS, Nimsoft and 3Tera.
The results exceeded the expectations of analysts polled by Thomson Reuters, who predicted 42 cents per share of earnings on $1.06 billion in revenue.
For its fiscal 2011 year that ends next March, the company expects earnings per share of $1.82 to $1.94 if currency levels remain stable. Revenue is forecast to grow 3 percent to 5 percent to between $4.4 billion and $4.5 billion on the same basis.
On average, analysts are predicting earnings of $1.89 per share on revenue of $4.49 billion.
CA Technologies shares were flat in after-hours trade after closing the regular session down 63 cents, or 3.3 percent, at $18.75.
