Post-Earnings Review - CA Inc.

LONDON, January 29, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on CA Inc. (NASDAQ: CA). On January 20, 2015, the company announced its financial results for Q3 FY15 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA to read our free earnings review on CA Inc. Commenting on the earnings release, CEO of CA Inc., Mike Gregoire, stated that overall Q3 results provide further evidence that the strategy the company put in place and its focus on rigorous execution continue to pay off. Although, CA Inc. saw a decline in Q3 sales, the company is on track for the full year, he added. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA

Earnings Overview 

During Q3 FY15, CA Inc. reported total revenue of $1.09 billion compared to $1.13 billion in Q3 FY14, primarily due to a decrease in subscription and maintenance revenue. The company's Q3 FY15 total revenue met Bloomberg analysts' forecast of $1.09 billion. The reported quarter revenue also reflected an unfavorable foreign exchange effect of $28 million. In Q3 FY15, the company's North American region revenue declined slightly to $709 million from $712 million in Q3 FY14. Further, the company's international revenue fell 8% Y-o-Y to $382 million in Q3 FY15. The free research on CA can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA

For Q3 FY15, CA Inc. reported GAAP operating margin of 29% compared to 28% in Q3 FY14. The company's GAAP net income from continuing operations fell to $218 million, or $0.49 per diluted share, in Q3 FY15, from $225 million, or $0.50 per diluted share, in Q3 FY14. Analysts from Bloomberg had expected the company to report GAAP net income from continuing operations of $188 million, or $0.43 per diluted share, in Q3 FY15.

In Q3 FY15, the company's non-GAAP operating margin stood at 38% compared to 39% in Q3 FY14. CA Inc. reported non-GAAP income from continuing operations of $297 million, or $0.67 per diluted share, in Q3 FY15, compared to $366 million, or $0.81 per diluted share, in Q3 FY14. The company's cash flow from continuing operations was $313 million in Q3 FY15 compared to $419 million in Q3 FY14.

During Q3 FY15, CA Inc. distributed $111 million as dividends to its shareholders, and the company repurchased 2.6 million shares of common stock for $75 million. The company is further authorized to purchase $875 million of its common stock under its current stock repurchase program, as on December 31, 2014. Additionally, effective January 02, 2015, CA Inc. has entered into an agreement to repurchase $75 million of its common stock to be delivered in March 2015. Sign up and read the free analyst's notes on CA at:

http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA

In its guidance for FY15, CA Inc. reaffirmed its total revenue guidance and expects it to decrease in a range of (2)% to (1)% in constant currency, translating to revenue of $4.26 billion to $4.30 billion, considering exchange rates prevailing on December 31, 2014. Meanwhile, the company revised its GAAP diluted EPS from continuing operation and anticipates it to decrease in a range of (7)% to (4)% in constant currency. Previously, the company had expected GAAP diluted EPS from continuing operation to decline in a range of (12)% to (8)%. Considering the exchange rates as of December 31, 2014, the company is anticipated to report GAAP diluted EPS from continuing operation of $1.76 to $1.83 for FY15. The company reaffirmed its FY15 cash flow from continuing operations guidance and expects it to grow in the range of 5% to 12% in constant currency, translating to $1.00 billion to $1.07 billion, considering exchange rates prevailing on December 31, 2014.

Stock Performance 

On the day following the earnings release, January 21, 2015, CA Inc.'s stock plummeted 5.46% to end the session at $29.94. Since then, the stock has moved both ways. On the last close, Wednesday, January 28, 2015, the stock finished at $29.89, down 0.17%, after vacillating between $29.74 and $30.22. A total of 4.06 million shares were traded, which was above its three months average volume of 2.99 million shares. Over the previous three trading sessions and last one month, the company's shares have lost 3.61% and 4.23%, respectively. However, the stock has gained 4.40% in the previous three months. Shares in CA Inc. closed above their 200-day moving average of $29.18. Furthermore, the stock traded at a PE ratio of 16.59. Visit Investor-Edge and access the latest research on CA at:

http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA

Sneak Peek to Corporate Insider Trading 

In the last one month, CA Inc. has reported only one corporate insider transaction to the U.S. Securities and Exchange Commission (SEC). On January 07, 2015, Mike Gregoire disposed 10,874 shares at a price of $30.62 per share, for a total value of $332,962. Complimentary in-depth research on CA is available at:

http://get.Investor-Edge.com/pdf/?c=CA%20Inc.&d=29-Jan-2015&s=CA

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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