) hit a new 52-week high of $33.54 on Dec 24, eventually closing
at $33.41. The closing share price represents a strong one-year
return of 51.1% and a year-to-date return of 46.9%.
Average volume of shares traded over the last 10 days (3,045K)
increased from the average volume of shares traded over the last
three months (2,542k).
The stock has a Zacks Rank #3 (Hold), with a market cap of $15.01
Key Growth Catalysts
Some of the current optimism surrounding the shares is related to
the recently introduced solutions that would connect
International Business Machines
) system z and the cloud. This cloud-based offering provides
advanced solutions to customers, thereby balancing the workload
across dynamic data centers and platforms.
Moreover, the launch of CA Nimsoft Monitor Snap, a feature-rich
free utility version of its popular CA Nimsoft Monitor solution
will also help CA to meet growing business needs with improved
flexibility and security.
Additionally, CA's cloud expansion and restructuring initiatives
remain on track. A decent renewal rate, modest cash position and
share repurchase activities also appear encouraging. The
company's endeavor to return cash to its investors in the form of
dividend payments also boosts investor confidence.
Apart from this, the company witnessed total bookings of $877.0
million in the second-quarter of fiscal 2014, up 5.0% from the
year-ago period. Revenues from North America remained flat while
International revenues were down 3% from the year-ago quarter.
CA is gaining traction in the Mainframe Solutions and Services
segments. In the last reported quarter, CA's mainframe revenues
were aided by higher sales of new products and mainframe capacity
while Services revenues increased due to higher professional
However, increasing competition from the likes of
) and a tepid IT spending environment are the major headwinds.
The Zacks Consensus Estimate for the fiscal third-quarter of 2014
is pegged at 68 cents. Estimates for 2014 and 2015 remain
unchanged at $2.86 and $2.42, respectively.
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