) is set to report third-quarter 2014 results on Jan 21. Last
quarter, the company posted a positive earnings surprise of
22.06%. Let us see how things are shaping up for this
Growth Factors This Past Quarter
Although CA reported better-than-expected second-quarter
results, the year-over-year comparison for the top line was down.
Nonetheless, recent news flows related to CA Nimsoft Monitor
Snap, a feature-rich free utility version of its popular CA
Nimsoft Monitor solution is gaining traction and has garnered
5000 customers in the first 100 days remain a positive factor for
the current quarter. CA's association with
International Business Machines
) to provide cloud-based offering to clients across dynamic data
centers and platforms is also a positive, going forward.
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 investors' confidence.
Moreover, CA is gaining traction in the Mainframe Solutions
and Services segments. We believe that CA's mainframe revenues
are expected to be aided by higher sales of new products and
mainframe capacity while Services revenues will receive a boost
from higher professional services engagements.
Our proven model does not conclusively show that CA will beat
earnings this quarter. That is because a stock needs to have both
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 68 cents. Hence, the difference is 0.00%.
CA's Zacks Rank #3 (Hold), when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), with Earnings ESP of +4.41% and a Zacks Rank #1 (Strong
), with Earnings ESP of +1.44% and a Zacks Rank #2 (Buy).
CA INC (CA): Free Stock Analysis Report
CIRRUS LOGIC (CRUS): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis
SEAGATE TECH (STX): Free Stock Analysis
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