DOW JONES NEWSWIRES
CA Inc.'s (CA) fiscal fourth-quarter earnings jumped 87% as the
business software maker raised its dividend and bolstered its stock
repurchase plan, though the results missed analyst estimates.
However, CA's outlook for earnings this year were better than
expected. For the new fiscal year, CA projected adjusted earnings
of $2.12 to $2.19 a share on revenue growth of 6% to 8%. Analysts
surveyed by Thomson Reuters expected $2.10 a share in earnings on a
6.9% increase in revenue.
"We said at the beginning of fiscal year 2011 that it would be a
year of growth and investment, and it was," Chief Executive Bill
McCracken said Thursday.
"We grew our revenue, earnings per share and cash flow while
building our technology portfolio, bringing new talent to the team,
further focusing our business on areas of strategic importance and
investing in new routes to market," he said.
CA, which makes software for mainframe and other corporate
computers, reported relatively steady operating profit for the last
few years, while it made significant cost cuts before and during
the recession.
For the quarter ended March 31, the company posted a profit of
$188 million, or 37 cents a share, up from $101 million, or 19
cents a share, a year earlier. Excluding stock-based compensation
and other items, earnings from continuing operations rose to 48
cents a share from 37 cents.
Revenue increased 4.9% to $1.13 billion.
Analysts expected earnings of 50 cents a share on revenue of
$1.16 billion.
Operating margin rose to 26.5% from 21.5%.
CA's board authorized another $500 million in share repurchases,
bringing the company's total program to $700 million including the
remainder from a previous plan. It increased its quarterly dividend
25%, or a penny, to 5 cents a share. Based on the number of diluted
shares outstanding in the earnings report, the increase would cost
roughly $5.1 million every quarter.
CA shares were flat at $25.06 after hours.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com