CA Technologies rises as 3Q results top Street
(Associated Press Via Acquire Media NewsEdge) NEW YORK -- Shares of software maker CA Technologies rose almost 3 percent Wednesday as its third-quarter results topped Wall Street's expectations.
THE SPARK: CA Technologies reported on Tuesday that it earned 55 cents per share on revenue of $1.2 billion in its fiscal third quarter. Adjusted earnings were 63 cents per share.
Analysts polled by FactSet expected earnings of 61 cents per share on revenue of $1.17 billion.
THE ANALYSIS: Michael Turits of Raymond James was pleased with the revenue beat, as CA's revenue performance missed analysts' estimates the previous two quarters. But the analyst remains cautious, as revenue dropped 5 percent in the quarter and he thinks it is too early to find a catalyst to speed revenue growth.
Even though bookings fell 2 percent, Turits said that it was better than the 5 percent decline he predicted, with the performance bolstered by early contract renewals.
The analyst maintained a "Market Perform" rating.
SHARE ACTION: CA Technologies' stock gained 65 cents, or 2.7 percent, to $25.20 in midday trading. The shares have traded in a 52-week range of $21.48 to $28.
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