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CA Technologies Q3 Profit Rises; Lifts FY12 Outlook - Quick Facts

1/24/2012 4:50 PM ET

CA Technologies (CA: Quote) reported net income for the third-quarter of $263 million or $0.54 per share, compared to $200 million or $0.39 per share in the prior year quarter.

Excluding items, adjusted income from continuing operations for the third quarter was $319 million or $0.65 per share, compared to $256 million or $0.50 per share in the prior year quarter. On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.54 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 10% to $1.26 billion from $1.14 billion a year earlier, while 13 analysts estimated revenue of $1.21 billion.

For the fiscal year 2012, the company now expects revenue growth of 6 percent in constant currency, compared with the previous outlook of 5 percent to 6 percent.

Earnings per share growth for fiscal 2012 has been raised to a range of 11 percent to 13 percent in constant currency, compared with the previous outlook of 6 percent to 9 percent. At Dec. 31, 2011 exchange rates, this translates to reported GAAP diluted earnings per share of $1.86 to $1.90.

The company also raised its fiscal 2012 adjusted earnings per share growth to a range of 11 percent to 13 percent in constant currency, compared with the previous outlook of 7 percent to 10 percent. At Dec. 31, 2011 exchange rates, this translates to reported non-GAAP diluted earnings per share of $2.21 to $2.25.

Analysts currently expect the company to earn $2.15 per share on revenue of $4.74 billion for the fiscal year 2012.

Separately, the company announced that its Board has approved a capital allocation program that targets the return of up to $2.5 billion to CA Technologies shareholders through the fiscal year ending March 31, 2014.

The Company's capital allocation program plans to return about 80 percent of expected cumulative free cash flow to shareholders through fiscal 2014. This includes the authorization to repurchase up to $1.5 billion in CA Technologies common stock, including approximately $230 million remaining under the Company's current share repurchase authorization.

Further, the company declared an increased quarterly dividend of $0.25 per common share payable on March 13, 2012 to shareholders of record at the close of business on February 14, 2012.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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