The 10-second takeaway
For the quarter ended June 30 (Q1), CA Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins increased.
CA Technologies logged revenue of $1.13 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.10 billion on the same basis. GAAP reported sales were 1.5% lower than the prior-year quarter's $1.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.78. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.78 for Q1 were 24% higher than the prior-year quarter's $0.63 per share. GAAP EPS of $0.73 for Q1 were 43% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 85.9%, 60 basis points worse than the prior-year quarter. Operating margin was 31.6%, 150 basis points better than the prior-year quarter. Net margin was 29.7%, 870 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $4.46 billion. The average EPS estimate is $2.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 236 members out of 303 rating the stock outperform, and 67 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give CA Technologies a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CA Technologies is hold, with an average price target of $26.45.
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