CA Beats Estimates - Analyst Blog
21 Juillet 2011 - 5:07PM
Zacks
CA Inc.
(CA) reported first quarter 2012 adjusted earnings
per share (EPS) of 52 cents, surpassing the Zacks Consensus
Estimate of 50 cents.
Revenue
Revenue of $1.16 billion was up
9.0% from $1.07 billion reported in the year-ago quarter. Revenue
growth was primarily attributable to healthy demand for its service
assurance, identity and access management, Nimsoft and mainframe
products. About 62.0% of the company's revenue came from North
America, while the remaining was derived from International
operations.
Subscription and
Maintenance revenue increased 7.2% year over year to
$1007.0 million. Professional Services revenue
came in at $90.0 million, up 15.4% from the prior-year quarter.
Software Fees and Other revenues increased 26.9%
to $66.0 million from $52.0 million in the year-ago quarter .
On the basis of geographical segments, North America generated
revenues of $716.0 million, up 9.0% from $655.0 million in the
year-ago quarter. International revenue (excluding America) was up
8.0% to $447.0 million from $414.0 million reported in the year-ago
quarter. Continuous weakness in Europe, the Middle East and Africa
affected revenues.
Bookings
Total bookings in the first quarter
shot up 18% to $865 million. The company signed 8 license
agreements for an aggregate contract value of $255.0 million (more
than $10.0 million each) compared with 6 license agreements worth
$188 million (each valuing more than $10.0 million) in the
comparable period last year.
Operating
Results
Operating income in the first
quarter stood at $228.0 million, up from $221.0 million in the
year-ago quarter. Excluding special items, such as purchased
software amortization, intangibles amortization, restructuring and
other costs, and including hedging gains and losses, non-GAAP
operating income in the quarter was $417.0 million versus $364.0
million in the year-ago quarter.
Net income on a GAAP basis in the
reported quarter was 45 cents per share versus 43 cents per share
in the year-ago quarter. Excluding special items, such as software
amortization, intangible amortization, restructuring and other and
hedging gains/losses, non-GAAP net income in the first quarter was
52 cents per share versus 43 cents reported in the prior-year
quarter.
Balance Sheet and Cash
Flow
CA Inc. generated cash flow from
continuing operations of $143 million compared with $122 million in
the prior year quarter. Cash, cash equivalents and marketable
securities were $2.950 billion. The company's net cash, cash
equivalents and marketable securities position was $1.643 billion
while total debt outstanding was $1.307 billion. In the first
quarter, the company repurchased approximately 6.4 million shares
of its common stock for $150 million and distributed $25 million in
dividends.
Guidance
For fiscal 2012, the company
expects revenue growth in the range of 6.0% to 8.0% at constant
currency. The company estimates revenues between $4.9 billion and
$5.0 billion. GAAP diluted earnings per share growth at constant
currency are projected in the range of 5.0% to 9.0%, down from the
previous range of 6.0% of 11.0%, implying diluted earnings per
share between $1.79 and $1.86.
Non-GAAP diluted earnings per share
are expected to grow in a range of 6.0% to 10.0%, implying non-GAAP
diluted earnings per share in the band of $2.14 to $2.21.
Our Take
CA Inc. posted decent first quarter
results, exceeding earnings estimates. Revenue also improved on a
year-over-year basis. However, the product demand trend was
moderate in the reported quarter. Keeping in mind the quarter’s
revenue backlog, we believe the fiscal 2012 guidance is a bit
conservative. We further believe that CA Inc.’s endeavor to return
shareholder value through share buybacks and dividend increases
will boost investor sentiment.
On the other hand, we are
apprehensive about intense competition in the software & cloud
computing space from big players, such as International
Business Machines (IBM) and Hewlett-Packard
Company (HPQ). In addition, its high debt balance and
European exposure may pose some challenges going forward.
Currently, CA Inc. has a Zacks #4
Rank, implying a short-term Hold rating.
CA INC (CA): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
Zacks Investment Research
Xtrackers California Mun... (NASDAQ:CA)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Xtrackers California Mun... (NASDAQ:CA)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024