CA Inc. Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component CA, Inc. (NASDAQ:CA) will unveil its latest earnings on Tuesday, January 24, 2012. CA is an information technology software and service company that helps organizations manage and secure their IT infrastructures and services.

CA, Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 51 cents per share, a rise of 8.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 51 cents during the last month. For the year, analysts are projecting net income of $2.02 per share, a rise of 5.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of 51 cents per share against a mean estimate of net income of 47 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.21 billion in revenue this quarter, a rise of 4.3% from the year ago quarter. Analysts are forecasting total revenue of $4.74 billion for the year, a rise of 7% from last year’s revenue of $4.43 billion.

Analyst Ratings: Analysts seem relatively indifferent about CA with six of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 6.3% to $236 million (47 cents a share) from $222 million (43 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.1% to $1.2 billion from $1.11 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 11.1% in the first quarter and 86.1% in the fourth quarter of the last fiscal year.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 6.6%.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Novell, Inc. (NASDAQ:NOVL), Red Hat, Inc. (NYSE:RHT), Hewlett-Packard Company (NYSE:HPQ), BMC Software, Inc. (NASDAQ:BMC), Quest Software, Inc. (NASDAQ:QSFT), Symantec Corporation (NASDAQ:SYMC), and Compuware Corporation (NASDAQ:CPWR).

Stock Price Performance: During December 16, 2011 to January 18, 2012, the stock price had risen $1.93 (9.6%) from $20.12 to $22.05. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 5.8% (+$1.26) over that span. It saw one of its worst periods between May 31, 2011 and June 13, 2011 when shares fell for 10-straight days, falling 8.2% (-$1.92) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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