CA Stock Higher in After-Hours Trading on Q4 Earnings Beat
NEW YORK (TheStreet) -- Shares of CA Inc. (CA) - Get Report are increasing by 0.3% to $30.05 in after-hours trading on Wednesday, after the New York-based company posted better-than-expected results for the 2016 fiscal fourth quarter.
After today's market close, the provider of IT management software and solutions reported earnings of 60 cents per diluted share, topping analysts' estimates of 57 cents per share.
Revenue for the quarter was $1 billion, above analysts' expectations of $989.5 million.
Bookings declined by 10% to $960 million year-over-year primarily due to lower renewals. Lower new product sales also impacted bookings.
"I am pleased to report that we achieved our guidance for full-year revenue, operating margin and EPS results, and exceeded guidance for full-year cash flow from continuing operations," CEO Mike Gregoire said in a statement.
For fiscal 2017, the CA sees earnings per diluted share between $2.51 and $2.56 on revenue of $4.04 billion to $4.08 billion.
Analysts are looking for earnings of $2.49 per share on revenue of $4.05 billion.
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
