CA Technologies Earns 63 Cents Per Share

After the closing bell, CA Technologies ($CA) reported earnings of 63 cents per share. Those are good results. Wall Street’s consensus was for 61 cents per share.

“Despite the headwinds to top-line growth we experienced during the first quarter, we remain committed to delivering the earnings per share and cash flow from operations growth we provided at the beginning of the fiscal year,” said Bill McCracken, chief executive officer, CA Technologies. “In addition to the benefits of a $35 million intellectual property transaction we closed during the quarter, we will drive increased profitability in our organic business and now expect to deliver further expansion of our GAAP operating margin to 31 percent and our non-GAAP operating margin to 36 percent for the full fiscal year.”

Here’s a bit of odd news that’s probably happening at other firms. CA shaved three cents per share off the upper-end of their guidance. The company now expects full-year earnings of $2.45 to $2.50 per share. The odd thing is that they actually increased their constant currency growth range from 9% – 12% to 10% – 12%. The difference is that the strong euro is eating their bottom line.

Business is good, but the currency environment is bad.

Posted by on July 26th, 2012 at 5:05 pm


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