CA Stock Climbing as Q4 Results Top Expectations
NEW YORK (TheStreet) -- Shares of CA (CA) - Get Report are rising by 5.47% to $31.60 on Thursday morning, after the company reported strong results for the 2016 fiscal fourth quarter.
After yesterday's closing bell, the IT management software and solutions provider posted earnings of 60 cents per diluted share, beating analysts' estimates of 57 cents per share.
Revenue was $1 billion for the period, higher than Wall Street's projections of $989.5 million.
Barclays maintained its "overweight" rating and $33 price target following the results.
"Management was disappointed with sales execution that wasn't very crisp, but highlighted lower discounting as a silver lining. Going into a better renewal year, this discipline means that the targets of improving bookings and revenue are starting to look more realistic," the firm wrote in a note.
CA's bookings fell by 10% to $960 million from last year primarily because of lower renewals. Lower new product sales also impacted bookings.
"As a result, total new product and capacity sales (which are highly tied to renewals) declined high single digits, aided by high single digit growth from acquisitions. We do not find this to be particularly concerning since management foresees renewals up next year," Barclays added.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, expanding profit margins and increase in net income.
The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CA
