Post-Earnings Briefing and Analysis - CA Inc.

LONDON, November 11, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on CA Inc. (NASDAQ: CA). On October 22, 2014, the company reported its financial results for Q2 FY15 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on CA Inc. During Q2 FY15, the company's GAAP income from continuing operations grew 2% on a Y-o-Y basis and its GAAP diluted EPS from continuing operations saw an increase of 4% from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q2 FY15, CA Inc. reported revenue of $1.079 billion compared to $1.105 billion in Q2 FY14. The company's revenue during the reported quarter came below Bloomberg analysts' forecast of $1.085 billion. The decrease in the company's overall revenue was primarily on account of a decrease in subscription and maintenance revenue, which was largely due to a decrease in Mainframe Solutions revenue and a slight decrease in professional services revenue. In Q2 FY15, the company executed a total of 6 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $217 million. The free research on CA can be downloaded as in PDF format at:

http://www.Investor-Edge.com/CAFreeReport

CA Inc. reported GAAP operating margin of 30% for Q2 FY15, compared to 31% in Q2 FY14. The company's GAAP net income broadened to $256 million, or $0.58 per diluted share, in Q2 FY15, from $240 million, or $0.53 per diluted share, in the year-ago quarter. Analysts from Bloomberg had expected the company to report GAAP net income of $200 million, or $0.47 per diluted share, in Q2 FY15. The company's GAAP EPS in Q2 FY15 was positively affected by $0.05, from a decrease in its GAAP effective tax rate.

On a non-GAAP basis, the company's operating margin was 40% in Q2 FY15 compared to 41% in the corresponding quarter last-year. The company reported non-GAAP income from continuing operations of $292 million, or $0.65 per diluted share, in Q2 FY15, compared to $375 million, or $0.83 per diluted share, in Q2 FY14. Non-GAAP EPS during Q2 FY15 was negatively affected by $0.15, from an increase in the company's non-GAAP effective tax rate. The company's cash flow from operations was $66 million in Q2 FY15, compared to $73 million in the year-ago period. Sign up and read the free analyst's notes on CA at:

http://www.Investor-Edge.com/CA-11112014

Mike Gregoire, CEO of CA Inc., commented that the company's Enterprise Solutions new sales were up for the second consecutive quarter. He also stated that CA Inc. continued to see solid performance in connection with renewals and that it maintained financial discipline across the business. Mr. Gregoire informed that the company will remain focused on the work needed to drive sustained revenue growth.

The CEO continued by saying that the Application Economy is transforming business, creating new opportunity and enormous complexity for the company's customers. He added that the company is uniquely positioned to help its customers build the new capabilities they need to grow and reduce the complexity they need to manage, and have focused in its business on solving problems.

CA Inc. distributed $111 million in dividends to its shareholders during Q2 FY15. The company is currently authorized to purchase $950 million of its common stock under its current stock repurchase program. Visit Investor-Edge and access the latest research on CA at:

http://www.Investor-Edge.com/CAEarningsCoverage

In its guidance for FY15, the company expects total revenue to decrease in a range of (-2)% to (-1)% in constant currency. Considering the exchange rates of September 30, 2014, this translates to report revenue of $4.27 billion to $4.33 billion. Further, GAAP diluted EPS from continuing operation is expected to decrease in a range of (-12)% to (-8)% in constant currency. Considering the exchange rates of September 30, 2014, this translates to report GAAP diluted EPS of $1.73 to $1.80 for FY15. The company also expects GAAP operating margin of 27% and non-GAAP operating margin of 37% for FY15.

Stock Performance 

On the day following the earnings release, October 23, 2014, CA Inc.'s stock ended the session at $27.75, up 1.24%. The stock has witnessed mostly an upward movement since then. On the last close, Monday, November 10, 2014, the stock finished at $29.93, down 0.40%, after vacillating between $29.85 and $30.22. A total of 1.90 million shares were traded, which was below its three months average volume of 2.58 million shares. Over the previous three trading sessions and last one month, the company's shares have gained 1.58% and 15.56%, respectively. However, the stock has declined 11.05% on YTD basis. Shares in CA Inc. closed above their 50-day and 200-day moving averages of $28.01 and $29.57, respectively. Furthermore, the stock traded at a PE ratio of 16.16 and has a Relative Strength Index (RSI) of 73.22.

Sneak Peek to Corporate Insider Trading 

In the last one month CA Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on CA is available at:

http://www.Investor-Edge.com/CAInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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