Stock Monitor: Verint Systems Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 12, 2018/If you want access to our free earnings report on CA, Inc. (NASDAQ: CA), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CA. The Company reported its financial results for the fourth quarter of the fiscal year 2018 (Q4 FY18) and for the full fiscal year 2018 (FY18) on May 08, 2018. The leading software developer surpassed market estimates for earnings for Q4 FY18. Additionally, the Company provided guidance for FY19. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, CA most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the quarter ended March 31, 2018, CA's revenues improved 7% to $1.08 billion compared to $1.01 billion in the fourth quarter of 2017. The Company's revenue numbers were in-line with market estimates. For FY18, the Company posted revenues of $4.24 billion compared to $4.04 billion in FY17.
During Q4 FY18, CA incurred total expenses, excluding interest and income taxes, of $816.0 million compared to $797.0 million in Q4 FY17. The Company reported an income before interest and income taxes of $267.0 million in the reported quarter compared to $215.0 million in the same quarter of last year.
CA's GAAP net income jumped 32% to $207.0 million in Q4 FY18 compared to $157.0 million in Q4 FY17. The Company posted a non-GAAP net income of $258.0 million in the reported quarter versus $227.0 million in the year ago comparable period.
For the reported quarter, CA posted GAAP diluted earnings per share (EPS) of $0.49 compared to $0.38 in the prior year's corresponding period, increasing 29% on a y-o-y basis. The Company's non-GAAP EPS surged 15% to $0.62 in Q4 FY18 compared to $0.54 in Q4 FY17, beating analysts' estimates of $0.60.
CA operates through three segments, namely: (i) Mainframe Solutions; (ii) Enterprise Solutions; and (iii) Services.
During Q4 FY18, CA's Mainframe Solutions segment's revenues advanced 3% to $549.0 million compared to $535.0 million in Q4 FY17, primarily due to a favorable foreign exchange effect. The segment's operating margin rose to 61% in the reported quarter compared to 59% in the prior year's same quarter.
CA's Enterprise Solutions segment added revenues of $453.0 million in Q4 FY18, up 13% from $400.0 million in Q4 FY17, due to revenues generated from the Company's acquisition of Veracode. For the reported quarter, the segment's operating margin increased to 6% versus 1% in the prior year's comparable period.
For the reported quarter, CA's Services segment's revenues grew 5% to $81.0 million compared to $77.0 million in the year ago corresponding period, driven by revenues generated from the Company's acquisition of Veracode and a favorable foreign exchange. The segment's operating margin improved to 6% in Q4 FY18 from negative 3% in Q4 FY17.
On a geographical basis, CA's revenues from the North America region increased 5% on a y-o-y basis and International revenues advanced 12% on a y-o-y basis.
As of March 31, 2018, CA's cash and cash equivalents stood at $3.41 billion compared to $2.77 billion as of March 31, 2017. The Company had a long-term debt, net of current portion, of $2.51 billion as of March 31, 2018, versus $2.77 billion as of March 31, 2017. The Company generated cash inflow from operating activities of $548.0 million in the reported quarter compared to $420.0 million in the year ago same period.
During FY18, CA repurchased approximately 5.0 million shares of its common stock for an approximate cost of $163.0 million.
For FY19, CA will implement Accounting Standards Codification (ASC) 606 revenue standard but will report results under both ASC 605 and ASC 606 revenue standards. However, the Company provided guidance for FY19 as per ASC 605 revenue standard for ease of comparison.
CA expects total revenues to be between flat to up 1% on a reported basis, and minus 1% to flat on a constant currency basis. This translates to revenues in the range of $4.25 billion to $4.29 billion at March 31, 2018 exchange rates.
At March 31, 2018 exchange rates, CA expects non-GAAP diluted EPS of $2.75 to $2.81, reflecting a growth of 6% to 8% on a reported basis and 2% to 4% on a constant currency basis for FY19.
For FY19, CA anticipates cash flow from operations to drop in the band of 1% - 5% on a reported basis, and 3% - 7% on a constant currency basis. At the exchange rates as of March 31, 2018, this translates to cash flow in the range of $1.14 billion - $1.18 billion.
Stock Performance Snapshot
June 11, 2018 - At Monday's closing bell, CA's stock was slightly up 0.33%, ending the trading session at $36.40.
Volume traded for the day: 2.56 million shares, which was above the 3-month average volume of 2.44 million shares.
Stock performance in the last month – up 3.70%; previous six-month period – up 9.74%; past twelve-month period – up 14.79%; and year-to-date – up 9.38%
After yesterday's close, CA's market cap was at $15.25 billion.
Price to Earnings (P/E) ratio was at 19.88.
The stock has a dividend yield of 2.80%.
The stock is part of the Technology sector, categorized under the Business Software & Services industry. This sector was up 0.3% at the end of the session.
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