Actionable news
0
All posts from Actionable news
Actionable news in CA: CA Inc.,

CA Inc (CA) Earnings and Revenues Beat Estimates in Q4

Zacks Equity Research

CA Inc. (CA - Free Report) reported encouraging fourth-quarter fiscal 2017 results. The company posted adjusted earnings (including stock-based compensation but excluding other one-time items) of 49 cents, beating the Zacks Consensus Estimate of 45 cents.

On a GAAP basis, earnings came in at 38 cents compared with 41 cents reported in the year-ago quarter.

Quarter Details

CA reported revenues of $1.012 billion, which was almost flat on a year over year basis. However, revenues surpassed the Zacks Consensus Estimate of $997 million.

Revenues from Subscription and maintenance (80% of total revenue) decreased 1.1% and revenues from Professional Services (8% of total revenue) decreased 6.1% year over year. However, Software fees and other revenues (12% of total revenue) increased 16%.

Moreover, on a segment basis, revenues from CA’s Mainframe Solutions declined 2% on a year-over-year basis to $535 million. Revenues from Enterprise Solutions increased 5% on a year-over-year basis to $400 million, whereas Services revenues decreased 6% year over year to $77 million.

Both North America and International revenues were almost flat in terms of local currency on a year-over-year basis. The company witnessed 48% increase in total bookings. Per the press release, bookings were up “primarily due to an increase in renewals and an increase in new product sales.”

Moving on, CA reported adjusted income from continuing operations before interest and income taxes (including stock-based compensation but excluding other one-time items) of $291 million, down 17.3% year over year. Non-GAAP operating income from continuing operations before interest and income taxes came in at $227 million compared with $252 million reported in the year-ago quarter.

As a percentage of revenues, adjusted income from continuing operations before interest and income taxes was down 614 basis points (bps) to 28.8%, primarily due to higher operating expenses. Adjusted operating expenses increased 12.8%...


More