CA, Inc. (CA)) shares are surging after its latest quarterly report and updated guidance.
Company Description
Computer Associates is a global IT company that offers hardware, software, and services to complex IT environments to businesses. The company works with governance, management, and security issues regarding its clients’ IT needs.
Another Surprise
On Jul 23 the company reported first-quarter results for fiscal 2010 that included increasing revenue, earnings, and guidance. Revenue grew 4% on a constant currency basis. Net income was $229 million, up 14% excluding currency fluctuation.
Earnings per share were 42 cents, up from 40 cents last year. This topped the Zacks consensus estimate of 38 cents. The announcement marked the fifth consecutive earnings surprise.
Company management expects earnings growth between 6% and 13% for the year.
Analysts Love It
Following the report, 11 of the 12 analysts polled by Zacks raised forecasts for the year. Estimates are now averaging $1.67, up 10 cents since the report.
The Zacks consensus estimate for next year is now $1.83, up from $1.71. These projections are calling for a 10.5% growth rate this year and another 9.5% next year.
The Chart
Shares surged following the report, breaking out of a long-term trading range. Take a look at the chart below.
