Free Annual Reports
CA's Second Quarter Earnings Report
Tickers in this Article »
CA
CA (Nasdaq:CA) announced its results for the most recent quarter on October 25, 2012. CA is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days.SEE: How To Decode A Company's Earnings Reports
The Numbers:
CA beat estimates with an adjusted 59 cents per share and revenues of $1.15 billion. Analysts were expecting 55 cents per share and revenues of $1.18 billion. Revenue declined 4% from the same period last year, as well as last quarter after shrinking 1.5% to $1.15 billion in the first quarter. CA reported profit of $222 million during the second quarter. According to the reported number, this is down 5.9% from last year's figures. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 0.4% in the first quarter.
Management Quote:
"While we had anticipated that several areas of our business would be down in the second quarter, our new product and capacity sales fell short of our expectations," said Bill McCracken, chief executive officer, CA Technologies. "Our performance was also affected by the weakening global economy, which elongated sales cycles. Despite this difficult environment, we were able to meet our expectations for margin through disciplined expense management."
A Look Back:
Net income has increased 8.7% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 31.5% from the year-earlier quarter.
Looking Ahead:
Over the past 90 days, the average estimate for the third quarter has fallen from 63 cents per share to 60 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $2.35 a share to $2.34 over the last 90 days.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days.SEE: How To Decode A Company's Earnings Reports
The Numbers:
CA beat estimates with an adjusted 59 cents per share and revenues of $1.15 billion. Analysts were expecting 55 cents per share and revenues of $1.18 billion. Revenue declined 4% from the same period last year, as well as last quarter after shrinking 1.5% to $1.15 billion in the first quarter. CA reported profit of $222 million during the second quarter. According to the reported number, this is down 5.9% from last year's figures. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 0.4% in the first quarter.
Management Quote:
"While we had anticipated that several areas of our business would be down in the second quarter, our new product and capacity sales fell short of our expectations," said Bill McCracken, chief executive officer, CA Technologies. "Our performance was also affected by the weakening global economy, which elongated sales cycles. Despite this difficult environment, we were able to meet our expectations for margin through disciplined expense management."
A Look Back:
Net income has increased 8.7% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 31.5% from the year-earlier quarter.
Looking Ahead:
Over the past 90 days, the average estimate for the third quarter has fallen from 63 cents per share to 60 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $2.35 a share to $2.34 over the last 90 days.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=55c9a66d5947c69b2dd06bc35fcd9935
