CA Technologies (CA) Tops Q4 EPS by 5c, Revs Beat
CA Technologies (NASDAQ: CA) reported Q4 EPS of $0.54, $0.05 better than the analyst estimate of $0.49. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $995.84 million.
Mike Gregoire, CA Technologies Chief Executive Officer, said:
“CA delivered strong performance both for the full year and the fourth quarter of fiscal 2017. We ended the year with momentum, and our fourth quarter performance enabled us to deliver most metrics at or above the high-end of our full year guidance ranges.
"I am particularly pleased with the quality of both our products and our sales execution. The success of our recent acquisitions gives me confidence that the strategic acquisitions of Automic and Veracode will create meaningful value within our product organization, to the benefit of both our customers and shareholders.
"This is an exciting time at CA. We are very enthusiastic about our opportunities in fiscal year 2018 and beyond. In many ways, we are just getting started."
OUTLOOK FOR FISCAL 2018
The following outlook for fiscal 2018 includes the acquisition of Veracode, assumes no further material acquisitions, includes incremental interest expense associated with the Company\'s March 2017 senior notes issuance, and contains \"forward-looking statements\" (as defined below).
The Company expects the following:*
- Total revenue to increase in a range of 2 percent to 3 percent as reported and 3 percent to 4 percent in constant currency. At March 31, 2017 exchange rates, this translates to reported revenue of $4.12 billion to $4.17 billion.
- Full-year GAAP operating margin between 26 percent and 27 percent and non-GAAPoperating margin of 36 percent. The Company also expects a full-year GAAP and non-GAAP effective tax rate of between 28 percent and 29 percent.
- GAAP diluted earnings per share from continuing operations to decrease in a range of 10 percent to 7 percent as reported and 8 percent to 6 percent in constant currency. At March 31, 2017 exchange rates, this translates to reported GAAP diluted earnings per share from continuing operations of $1.67 to $1.72. This is inclusive of the near-term impact of acquisitions on operating margins, and approximately $0.06 impact from the incremental interest expense associated with the Company\'s March 2017 senior notes issuance, partially offset by organic operating expense improvements.
- Non-GAAP diluted earnings per share from continuing operations to decrease in a range of 5 percent to 3 percent as reported and 4 percent to 2 percent in constant currency. At March 31, 2017 exchange rates, this translates to reported non-GAAPdiluted earnings per share from continuing operations of $2.35 to $2.40. This is inclusive of the near-term impact of acquisitions on operating margins, and approximately $0.06 impact from the incremental interest expense associated with the Company\'s March 2017 senior notes issuance, partially offset by organic operating expense improvements.
- Approximately 412 million shares outstanding at fiscal 2018 year-end and weighted average diluted shares outstanding of approximately 415 million for the fiscal year.
- Cash flow from continuing operations to change in a range of minus 2 percent to plus 2 percent as reported and in constant currency. At March 31, 2017 exchange rates, this translates to reported cash flow from continuing operations of $1.05 billion to $1.10 billion. This is inclusive of approximately $33 million impact from the incremental interest expense associated with the Company\'s March 2017 senior notes issuance
For earnings history and earnings-related data on CA Technologies (CA) click here.
