Operating Margins Drive CA Technologies' (CA) EPS Beat - Mizuho Securities Reiterates Buy

Mizuho Securities reiterated a Buy rating and $29.00 price target on CA Technologies (NASDAQ: CA) following the company's 3Q earnings report. Revenues and EPS came in above consensus. CA’s total revenues came in at $1.03bn vs consensus of $1.001bn while EPS of $0.63 printed ahead of expectations of $0.58. EPS upside was the result of operating margins coming in at 38% vs expectations of 36%.

Analyst Abhey Lamba commented, "CA's revenue and EPS came in above consensus as results benefited from early renewal of some contracts. Additionally, the company also benefited from the ASR and acquisitions. We continue to like the stock for its defensive characteristics in tough macro conditions. Mainframe exhibited stability and strong margins, which should help the stock performance in the current environment. We are maintaining our Buy rating and $29 PT."

For an analyst ratings summary and ratings history on CA click here. For more ratings news on CA click here.

Shares of CA closed at $26.85 yesterday.

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