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Last Update: 25-Jan-12 10:10 ET
CA Tech Up 10% Following Earnings/Guidance/Increased Dividend
Late yesterday, CA Tech (CA $25.10 +2.28) reported third quarter earnings of $0.65 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $0.54.
Revenues rose 10.4% year/year to $1.26 billion versus the $1.21 billion consensus.
For fiscal year 2012, the company raised its EPS growth expectations to 6%, which equates to approx. $2.21 to $2.25, excluding non-recurring items, versus $2.15 Capital IQ Consensus Estimate, up from growth of +5-6%; sees FY12 revenue of $4.8 billion versus the $4.76 billion Capital IQ Consensus Estimate.
In a separate press release, the company's capital allocation program plans to return approximately 80% of expected cumulative free cash flow to shareholders through fiscal 2014. This includes a planned increase in the annual dividend from $0.20 to $1.00 per common share and the authorization to repurchase up to $1.5 bln in CA Technologies common stock, including approximately $230 mln remaining under the Company's current share repurchase authorization.
Approximately $500 mln of the planned repurchase is expected to be an accelerated share repurchase pursuant to an agreement executed in the Company's fiscal fourth quarter ending March 31, 2012. CA Technologies expects to provide annual guidance for fiscal year 2013 during its fourth earnings call in early May 2012.
Revenues rose 10.4% year/year to $1.26 billion versus the $1.21 billion consensus.
For fiscal year 2012, the company raised its EPS growth expectations to 6%, which equates to approx. $2.21 to $2.25, excluding non-recurring items, versus $2.15 Capital IQ Consensus Estimate, up from growth of +5-6%; sees FY12 revenue of $4.8 billion versus the $4.76 billion Capital IQ Consensus Estimate.
In a separate press release, the company's capital allocation program plans to return approximately 80% of expected cumulative free cash flow to shareholders through fiscal 2014. This includes a planned increase in the annual dividend from $0.20 to $1.00 per common share and the authorization to repurchase up to $1.5 bln in CA Technologies common stock, including approximately $230 mln remaining under the Company's current share repurchase authorization.
Approximately $500 mln of the planned repurchase is expected to be an accelerated share repurchase pursuant to an agreement executed in the Company's fiscal fourth quarter ending March 31, 2012. CA Technologies expects to provide annual guidance for fiscal year 2013 during its fourth earnings call in early May 2012.
