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Light Guidance Smacks CA

Shares fall as the EPS forecast comes up short.

Shares of CA (CA) - Get CA, Inc. Report tumbled Wednesday after the company's fourth-quarter earnings report offered a glum forecast for the new fiscal year.

CA was recently off $1.59, or 5.7%, to $26.25.

The business software maker said it narrowed its fourth-quarter loss to $20 million, or 4 cents a share, from $41 million, or 7 cents a share a year earlier.

Excluding items, CA earned 20 cents a share, matching the Thomson Financial analyst consensus estimate.

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Revenue rose 7% to $1.01 billion, in line with analysts' forecasts.

For fiscal 2008, CA said it expects to earn 94 cents to 98 cents a share before items on revenue of $4.05 billion to $4.1 billion.

Analysts were expecting earnings of $1.03 a share before items on revenue of $4.12 billion.

CA also said it is in the process of executing an accelerated share repurchase of up to $500 million in common shares. The transaction will be financed with existing cash.