CA Technologies (CA) on Thursday updating its fiscal year 2014 outlook for reported and adjusted earnings per share as well as its effective tax rate following completion of an Internal Revenue Service appeals process relating to the examination of its federal income tax returns for fiscal years 2005, 2006 and 2007.
The company said it now expects a fiscal year 2014 effective tax rate of about 14%. Previously the company expected a fiscal year 2014 effective tax rate of about 31%.
The company said it expects to record a benefit of about $165 million to $185 million to income in the first quarter of fiscal year 2014 from the reversal of the previous accounting accrual related to the matter. The benefit will affect adjusted income over the course of fiscal year 2014.
The company also expects to receive a cash refund of about $70 million to $80 million by the end of the second quarter of fiscal year 2014.
As a results, the company now expects fiscal 2014 earnings of $1.84 to $1.94 per share and adjusted earnings of $2.93 to $3.03 per share. Previously, the company expected earnings of $1.48 to $1.56 per share and adjusted earnings of $2.35 to $2.43 per share.
The company's fiscal year 2013 revenue outlook remains unchanged at $4.43 billion to $4.52 billion.
The company continues to expect a full-year operating margin of 23% and adjusted operating margin of 36%.
Analysts currently expect the company to earn $2.42 per share on revenue of $4.63 billion for the fiscal year 2014.
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