CA Profit Tops Estimate

(RTTNews) - Information technology management software maker CA Technologies, Inc. (CA) said Wednesday that its second quarter profit rose 7.7% from last year, as better cost control and an income tax benefit more than offset a slight decrease in revenue.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations.

Mike Gregoire, CA Technologies Chief Executive Officer, said, "We are starting to see traction in the market as a result of our efforts. Enterprise Solutions new sales were up for the second consecutive quarter. We continued to see solid performance in connection with renewals and we maintained financial discipline across the business."

CA shares are currently losing 1.31% in after hours trading after closing the day's regular trading session at $27.41, down 15 cents. The shares trade in a 52-week range of $25.25 to $36.22.

For the second quarter ended September 30, 2014, the New York-based company reported net income of $256 million or $0.58 per share, compared to $240 million or $0.53 per share for the year-ago quarter.

Income from continuing operations for the second quarter was $235 million or $0.53 per share, compared to $231 million or $0.51 per share in the prior year quarter.

Excluding items, adjusted income from continuing operations for the second quarter was $292 million or $0.65 per share, compared to $375 million or $0.83 per share in the second quarter of last year.

On average, aa analysts polled by Thomson Reuters expected the company to earn $0.62 per share for the second quarter. Analysts' estimates typically exclude special items.

Revenue for the second quarter fell 2% to $1.08 billion from $1.11 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $1.09 billion for the second quarter.

The company attributed the decline in revenue mainly to decrease in subscription and maintenance revenue, which was largely due to a decrease in Mainframe Solutions revenue and, to a lesser extent, a decrease in professional services revenue.

Total bookings for the quarter fell 11% to $749 million from $844 million last year, mainly due to an expected year-over-year decrease in renewals from the timing of the renewal portfolio within subscription and maintenance bookings, the company said.

The company said it still expects fiscal year 2015 revenue to decrease in a range of minus 2% to minus 1% in constant currency. At September 30 exchange rates, this translates to reported revenue of $4.27 billion to $4.33 billion.

The company also continues to expect fiscal year 2015 earnings per share from continuing operations to decrease in a range of minus 12% to minus 8% in constant currency. At September 30 exchange rates, this translates to reported earnings per share of $1.73 to $1.80.

The company said it now expects fiscal year 2015 adjusted earnings per share from continuing operations to decrease in a range of minus 20% to minus 18% in constant currency, compared to prior guidance was minus 21% to minus 19% in constant currency. At September 30 exchange rates, this translates to adjusted earnings per share of $2.40 to $2.47.

Analysts currently expect the company to earn $2.46 per share on revenue of $4.37 billion for the fiscal year 2015.