DOW JONES NEWSWIRES
CA Inc.'s (CA) fiscal fourth-quarter earnings rose 12% as the
business-software maker posted stronger revenue in all major
segments, led by software fees.
For the new fiscal year, the company forecast adjusted earnings
of $2.45 to $2.53 a share, excluding currency impacts, and revenue
of $4.85 billion to $4.95 billion. Analysts polled by Thomson
Reuters most recently projected $2.49 a share in earnings and $5.01
billion in revenue.
The maker of software for mainframe and other corporate
computers is benefiting from a sharpened focus on helping customers
manage upgrades in information technology. It's betting it can
continue its growth path through acquisitions and internal
development while devoting more of its cash to investors.
The company has bolstered its offerings through a recent streak
of acquisitions, including its June deal to buy privately held
software maker Interactive TKO Inc. for $330 million.
CA in January raised its annual dividend to $1 from 20 cents and
boosted its buyback program to $1.5 billion.
For the quarter ended March 31, CA posted a profit of $211
million, or 45 cents a share, up from $188 million, or 37 cents a
share, a year earlier. Excluding amortization expense, stock-based
compensation and other items, earnings rose to 56 cents a share
from 48 cents. Revenue increased 5.3% to $1.19 billion.
Analysts expected a per-share profit of 52 cents on revenue of
$1.19 billion.
Operating margin narrowed to 25.3% from 26.5%.
Bookings fell 18%, or 17% on a constant currency basis.
Subscription and maintenance revenue -- which accounts for the
lion's share of the top line -- rose 1.7%, while professional
services revenue increased 13% and software fees and other revenue
jumped 43%.
Shares closed Thursday at $26.41 and were down 10 cents after
hours. The stock, which surged in January after the company
unveiled its shareholder-friendly initiatives, is up 31% so far in
2012.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108;
ben.rubin@dowjones.com