Earnings Preview for CA Technologies (CA)

CA Technologies

is scheduled to report fiscal fourth-quarter 2011 results after the markets close tomorrow, May 12. Analysts expect the software company to announce that per-share earnings rose 32.0% from a year ago to $0.50. That consensus estimate is unchanged in the past 60 days. The census revenue forecast calls for $1.2 billion, an increase of 5.0% from a year ago. CA is one of the world's largest software companies and provides tools for managing networks, databases, applications, storage, security and other systems. The company offers consulting, implementation and training services worldwide to businesses, government agencies and schools. CA named a new chief information officer in April and issued its 2011 sustainability report last week. For the full year, analysts are looking for earnings to have grown 16.9% year-over-year to $1.95 per share on revenues up 3.9% to $4.5 billion. Note that analysts have underestimated CA's earnings by a penny or so per share in most recent quarters. CA has a consensus Buy rating and a mean price target of $27.25 per share. But shares have traded between $22 and $25 since October. The share price is above the 200-day and 50-day moving averages, though. Year to date, the stock has underperformed its industry average and the broader markets.