CA Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
CA (NASDAQ: CA) unveils its next round of earnings this Wednesday, October 26, 2011. Get prepared with Benzinga's ultimate preview for CA's second quarter earnings.
Earnings and Revenue:
Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 47 cents/share and revenues of $1.19 billion. CA's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 48 cents/share on revenues of $1.11 billion. We'll have to wait for Wednesday to see if CA reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 | Q4 | Q3 | Q2 |
| EPS Estimate | $0.47 | $0.46 | $0.46 | $0.44 |
| EPS Actual | $0.50 | $0.48 | $0.47 | $0.48 |
Stock Performance:
As of October 20, 2011, CA's current share price was $21.33. Shares are down 12.2% year to date. For a full 12 months, the return has declined by 6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for CA is a Hold. Over the past three months this rating's strength has declined slightly.
Competitors:
Wondering how CA compares to rivals in the same sector? Here are a few of the company's peers.
- BMC Software (NASDAQ: BMC): Moderate Buy with a $0.60 recent quarter EPS
- Compuware (NASDAQ: CPWR): Strong Buy with a $0.10 recent quarter EPS
- Hewlett-Packard Company (NYSE: HPQ): Hold with a $1.10 recent quarter EPS
- International Business Machines (NYSE: IBM): Moderate Buy with a $3.28 recent quarter EPS
CA is in the computer software industry, which has experienced price/earnings growth of 3%.
Finally, a description of the company's main areas of operation: CA is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.
Take Action:
Now that you've gotten an advanced peak at CA's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.
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